NEW DELHI: India’s largest telecom operator Vodafone Idea plans to invest Rs 27,000 crore in 2019-20, supported by savings of around Rs14,000 crore that it expects to come from synergising operations of merged entities, according to a company’s document.
The debt-ridden company has advanced its target date to complete integration of Vodafone and Idea Cellular business to financial year 2021 from fiscal 2023.
“Capex guidance of Rs270 billion in financial year 2019-20 supported by existing co-located equipment to be redeployed, spectrum consolidation, capex avoidance and efficiencies,” the document said.
The company expects advancing of synergy target by two years will help it improve cash flow to the tune of Rs 8,400 crore and re-deployment of co-located equipments of Vodafone and Idea will help it save Rs 6,200 crore.
The company has chalked out deleveraging plan by raising capital and sell 11.15% stake in Indus Towers.
Vodafone Idea estimates that sale of 11.15% stake in Indus Towers can realise Rs 5,000 crore, which it will use in lowering debt.
The merged entity’s gross debt as on 30 September 2018 stood at Rs1,26,100 crore. Around 79% debt on the company is net dues for spectrum payment.
Source: Press Trust of India
