Vodafone Idea to pay Rs 1,680 crore spectrum auction instalment with a delay of 30 days

Debt-ridden Vodafone Idea has sought 30 days more time to pay around Rs 1,680 crore for spectrum auction instalment due on Thursday, a senior company official said on Wednesday. The company has proposed to pay the amount with interest.

"We have submitted a letter to DoT that we propose to pay the spectrum auction instalments of Rs 1,680 crore towards the 2022 auction, which is due on August 17, by availing the grace period of 30 days with interest, in accordance with the terms of NIA (Notice Inviting Applications)," Vodafone Idea chief financial officer Murthy GVAS said during the earnings calls.

The development comes even after one of the promoters has confirmed to the company that it will provide direct or indirect financial support to the extent of Rs 2,000 crore in the event of any fund requirement for meeting impending payment obligations.

The company has also acquired a 5G spectrum in mid-band (3300 megahertz) and millimetre wave in the 26 GHz band in July 2022 spectrum auction. Vodafone Idea's consolidated net loss widened to Rs 7,840 crore in the first quarter ended June 30.

The consolidated revenue from operations during the reported quarter increased marginally by 2.3 per cent to Rs 10,655.5 crore from Rs 10,406.8 crore in June 2022 quarter.

The total gross debt (excluding lease liabilities and including interest accrued but not due) as of June 30, 2023, stood at Rs 2,11,760 crore, comprising deferred spectrum payment obligations of Rs 1,33,740 crore, and AGR liability of Rs 66,860 crore that are due to the government.

Debt from banks and financial institutions stood at Rs 9,500 crore, and money raised through debt instruments stood at 1,660 crore. With cash and cash equivalents of Rs 250 crore, the net debt stood at Rs 2,11,510 crore.

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