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Economic Times
a day ago
- Business
- Economic Times
vodafone idea: Incremental positives in Vodafone Idea, but funding hinges on AGR clarity: Balaji Subramanian
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads "We will have to see what all steps the government can take without incurring the wrath of the Supreme Court . So, my sense is that one option can be to extend the timeline of the AGR payments , the other one could be slightly more difficult option but that could mean providing some relief especially on the interest and the penalty part of the AGR liability," says Balaji Subramanian, IIFL Capital So, there were a number of positive things to take away from Vodafone's results. So, one was as you rightly said their daily revenue run rate was the highest in a long time. Their aprus were also higher. The subscriber losses have persisted, but the good thing is that at least they are lower than where they used to be. The capex has gone up which is a positive because the rollouts are critical as far as stemming their subscriber losses are concerned. So, there have been a few positives, but these are all incremental positives. What we really need is any relief on the AGR front because that is where the cash flow burden can meaningfully come off and that is what would lend comfort to banks when they decide whether to lend or on that count a couple of weeks back while the Supreme Court turned down the writ plea of Bharti and Vodafone Idea, the good thing there was that the court also made an observation that should the government go ahead and come out with any relief measures the court will not come in the way, so to that extent it is a will have to see what all steps the government can take without incurring the wrath of the Supreme Court. So, my sense is that one option can be to extend the timeline of the AGR payments, the other one could be slightly more difficult option but that could mean providing some relief especially on the interest and the penalty part of the AGR liability. So, now the ball is in the government's court and based on how the progress happens on any relief on AGR, that is when the fundraising angle will start probably kicking I have a cautious stance on the name. This is simply because of the fact that even with an AGR waiver the cash outgo will be fairly meaningful and if you look at what Vodafone Idea's turnaround plan was, the one which they had articulated when they raised funds a little over a year back, was that one, there will be tariff increases which played out, so they did their fundraise in April last year and the tariff hikes were announced towards the end of June, so that happened. The second thing was they said they will be able to successfully complete the equity part of the fundraising. There also they the problem has been was there was an expectation that the AGR dues also will see a meaningful reduction and as a result the debt raise which was also one of the planks of the turnaround strategy, that should also fall into place. But unfortunately, that part of the story has not played out and what we have seen is that even the ARPU increase or rather more precisely the revenue increase after the tariff hikes they have been a little bit underwhelming because there has been a fair bit of downtrading and churn that has happened, so that is where things have not exactly gone as per if they manage to get some relief on the AGR burden and the debt funding falls in place, I definitely see a pop in the stock, but after that they will have to again start battling in the marketplace where things are not all that simple because we do have two strong competitors which are way ahead in terms of rollouts are concerned and their cash flow and balance sheet metrics are also quite strong. So, it will be an uphill task for Vodafone Idea even if they manage to get all these things in I do not really subscribe to what you stated on Starlink completely because if you look at Starlink a couple of weeks back they launched in Bangladesh where if you convert the pricing there into Indian rupees, you can see that their plan starts at around Rs 2900 per month or so. There are two plans. One is at around 2900, the other one is a little over Rs 4000 per month. And in India when it launches, we do not know whether this will be the pre-GST pricing. So, if we are going to have GST also on top, then we are looking at something like a Rs 3500 per month and let us not forget that unlike in certain pockets in the US where they offer the terminal also free of cost, here the terminal is also being when I mentioned here, I refer to Bangladesh where the terminal costs around Rs 35,000. So, that means that it is going to be on the fairly expensive side. I do know that Starlink offers $10 plan in Kenya, but let us not forget that in Kenya the conventional fixed broadband plans start at around $20, that is not the case in India where you have the entry level plan of Jio the FTTH plan starts at Rs 399 plus GST. So, even with that we are looking at a Rs sub-500 number and compared to that Starlink is probably six to seven times priced higher. So, at least as things stand, Starlink will be largely restricted to either certain niche high-income population groups or it might be more relevant in areas where it is near impossible to have either a fixed line connectivity or even a 5G FWA connectivity.
New Indian Express
6 days ago
- Business
- New Indian Express
Spot electricity prices fall in May amid unseasonal rain
The country's spot electricity prices on power exchanges briefly touched zero in May, driven by unseasonal rain across the country and a surge in renewable power generation. According to a report by IIFL Capital, limited thermal power backup created a rare surplus, pushing prices on the power exchange to record lows. On May 25, 2025, average day-ahead prices dropped to just Rs 0.56 per unit, with near-zero prices observed during several time blocks between 9:15 AM and 2:30 PM. The average daily price on that day was Rs 1.53 per unit. For the entire month of May, real-time electricity prices declined by 25 percent year-on-year to an average of Rs 3.56 per unit. One of the key factors behind the reduced reliance on thermal power is the addition of 25 gigawatts (GW) of solar capacity over the past year. However, India currently lacks adequate pumped storage or battery energy storage systems to absorb surplus generation, further contributing to price volatility.
India Gazette
6 days ago
- Business
- India Gazette
Spot power prices dropped to zero in India on May 25, reflecting risk of 'Solar Maximum': Report
New Delhi [India], May 28 (ANI): In an unprecedented development, India's spot power prices fell to zero on May 25 because of the subdued weekend demand, says a report by IIFL Capital. The situation came due to the twin impact of early monsoon rains and a huge 25-gigawatt solar capacity addition over the past year. According to the IIFL Capital report, the situation was further compounded by limited thermal power backup, which created a rare surplus that sent prices on the power exchange tumbling to the bottom. The situation arises because India has not created a sufficient pumped or battery power storage system to store the surplus power generation. The IIFL report analysed the impact of the incident on various parts of the energy ecosystem. In India, we need both Pumped Storage Projects and Battery Energy Storage Systems that will benefit from surplus renewable energy (RE) supply available at very low prices. The situation is positive for the Commercial and Industrial (C&I) storage players, especially those with access to captive demand (TPWR, JSWEL, etc.), allowing RE capacity addition irrespective of grid-level supply constraints. The current situation is also beneficial for the exchanges as higher liquidity and lower prices equate with higher exchange volumes. The government is also actively promoting energy storage solutions, including both Pumped Storage Projects (PSPs) and Battery Energy Storage Systems (BESS), to improve grid stability and harness renewable energy sources. Specifically, the Ministry of Power and the Central Electricity Authority (CEA) are involved in approving Detailed Project Reports (DPRs) for PSPs and formulating schemes for BESS, like the Viability Gap Funding scheme. The report says green hydrogen and centres will sustain future growth. 'In addition to increased dependence on pumped storage and battery projects, we expect accelerated forays into adjacencies like green hydrogen, centres, and electricity-intensive manufacturing processes to sustain growth and enhance value capture.' It adds that the increasing requirement for adding larger storage capacities to RE projects will firm up supply and forward integration into adjacencies for enhanced value capture. It will also materially drive up capex per MW. Recent government data suggests India added a total power-generating capacity of 13,495 megawatts (MW) in the first quarter (1Q) of 2025, in which renewables accounted for 78.9 per cent of all new capacity additions. Solar power was the main contributor to this growth, accounting for 57.7 per cent of the total capacity addition. (ANI)
Time of India
26-05-2025
- Business
- Time of India
sagility india: Sagility B.V. to offload up to Rs 2,671 crore stake in Sagility India via block deal on Tuesday
Sagility B.V., a promoter entity of Sagility India , plans to sell shares worth up to Rs 2,671 crore ($314.7 million) via block deals on Tuesday, according to a term sheet issued by IIFL Capital, the deal's base offer comprises up to 346.13 million equity shares, representing a 7.39% stake in the company. An oversubscription option of 356.87 million shares could take the total offer size to 703 million shares — or as much as 15.02% of Sagility's outstanding equity floor price for the offer is set at Rs 38 per share, reflecting an 11.4% discount to the stock's last closing price of Rs 42.87 on the NSE as of May the floor price, the base offer is valued at Rs 1,315 crore ($154.9 million), while the full offer could fetch up to Rs 2,671 crore ($314.7 million). The entire transaction is a secondary sale, with no fresh issue of India, a provider of business process management services, launched its Rs 2,106 crore IPO in November last year, which was subscribed over three times. That issue, too, was entirely an offer-for-sale of 702.2 million shares by Sagility B.V. The promoter group currently holds an 82.39% stake in the company.
Economic Times
21-05-2025
- Business
- Economic Times
Aegis Vopak Terminals announces price band of Rs 223-235 for Rs 3,500 crore IPO
Aegis Vopak Terminals has announced a price band of Rs 223-235 for its initial public offering (IPO), which will be a fresh issue of equity shares, aggregating up to Rs 3,500 crore. ADVERTISEMENT The issue is set to open for public bidding on May 26 and will be available til May 28. Shareholders can make a bid of a minimum of 63 shares and in multiples of 63 thereof. Anchor investor bidding will start from May 23, a day before the issue opens for public subscription. The offer is being made through a book-building process, and the shares of the company are proposed to be listed on the NSE and company plans to use the net proceeds from the issue for the repayment or prepayment, in full or in part, of certain outstanding borrowings, funding capital expenditure for the contracted acquisition of the cryogenic LPG terminal in Mangalore, and meeting general corporate requirements. IIFL Capital, ICICI Securities, Jefferies, HDFC Bank, and BNP Paribas are the book-running lead managers to the issue, while MUFG Intime India is the registrar to the issue. ADVERTISEMENT Aegis Vopak is the largest Indian third-party owner and operator of tank storage terminals for liquified petroleum gas ('LPG')and liquid products in terms of storage capacity, as of June 30, 2024. The company owns and operate a network of storage tank terminals having an aggregate storage capacity of approximately 1.50 million cubic meters for liquid products and 70,800 metric tons of static capacity for LPG as of June 30, 2024, and offers secure storage facilities and associated infrastructure for liquids such as petroleum, vegetable oil, 172 lubricants, and various categories of chemicals and gases such as LPG (including propane and butane). ADVERTISEMENT The company has the largest storage capacity in India's LPG tank storage sector, contributing to approximately 12.23% of the total national static capacity, as of June 30, 2024. Gas Terminal Division – This division is primarily engaged in the storage and handling of LPG, including propane and butane. Liquid Terminal Division – This division focuses on the storage and handling of liquid products such as petroleum, chemicals, and vegetable oils. It manages over 30 different chemicals across various classes and categories, and also handles more than 10 products within the edible and non-edible oil segments. Also read: CleanMax Enviro plans Rs 5,000 cr IPO to boost renewable energy growth (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
