Latest news with #AGR
New York Post
5 days ago
- Politics
- New York Post
Americans need full answers on the Secret Service's Trump assassination-attempt failures
A full year (as of Sunday) after Matthew Thomas Crooks came within a hair of killing President Donald Trump, the nation still has no good answers as to the how or why of it. That is, no clear info on the would-be assassin's motives — and no satisfactory explanation of how the Secret Service let him come so very close to succeeding. The New York Times managed to (seemingly) get access to Crooks' web-browsing history, and still couldn't say much of anything for sure. His family won't talk to the press; that may be wise of them, but is frustrating to the many Americans who feel we should know more. He looks like a smart, lonely kid who sank into mental illness at an age common for the onset of several deep disorders; maybe we just can't find out much more. But we surely can learn more about the security failures that cleared the shooter's way onto that roof. Indeed, it's pretty telling that only the determination of Corey Comperatore's widow seems to have forced several Secret Service heads to roll — and it was only Thursday, three days before the anniversary, that six agents who worked the Butler, Pa., rally got suspended. Not fired, suspended, for 10 to 45 days. The timeline of what went wrong that day is damning: Crooks, armed with a rifle, was somehow able to get onto the roof of the the AGR building just 400 feet from the stage from where Trump would speak — a building the Secret Service had already identified as a security concern, yet somehow failed to secure. Nearly 30 minutes before the shooting, local cops raised alarms that a suspicious man with a rangefinder was spotted hanging around the building. And two minutes before, the Secret Service Security Room was told that someone was on the roof. Yet with all of that information, agents failed to act in time to stop Comperatore from being killed and Trump from very nearly being killed. This was no run-of-the-mill ball-dropping by one or two agents, but deadly incompetence on every level. The agency's Biden-era leadership may have slow-rolled any investigation or punishment once then-USSS Director Kimberly Cheatle quit soon after the epic failure, but shouldn't Trump's hires have caught up by now? Getting to the facts is no impossible task; it starts with grilling each and every agent on duty that day, and the chain of command above them about each of their decisions: Give the public a complete accounting of who left the security team so undermanned; exactly how communications failed so badly; why information about a clear threat didn't bring the appropriate response. That should be a top priority for FBI Director Kash Patel. Trump has graciously dismissed the whole thing as 'a bad day' for the Secret Service, saying he has 'great confidence in these people.' But that doesn't let his top people off the hook; this cannot happen again. Imagine the national and global turmoil, had Trump turned his head just a second or two later. At the very least, get Americans a full tick-tock timeline of exactly who decided what when, and so left such gaping holes in Trump's security. Expose everyone at fault, and hold them all accountable.
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Business Standard
06-07-2025
- Business
- Business Standard
AGR dues: Vodafone Idea unlikely to get further relief or payment extension
"There may be some payment terms being proposed (by the company), but the question remains whether they'll be able to honour those payments," the official added New Delhi Listen to This Article The government is not keen on giving further relief to Vodafone Idea (Vi) in the form of relaxed or extended payment schedule for the adjusted gross revenue (AGR) amount due from FY26 onwards, according to officials. While discussions with the country's third-largest telecom player are ongoing, giving further financial leeway is becoming increasingly difficult, an official at the Department of Telecommunications (DoT) said. To be specific, the government is not willing to convert more dues into equity and cannot reduce the ₹84,000 crore AGR amount owed by the company. 'The government has already taken equity. The idea was to give
Mint
04-07-2025
- Business
- Mint
Vodafone lenders worried about the fate of loans as telco seeks more debt
Mumbai: Lenders to Vodafone Idea Ltd are worried that the telecom operator which is trying to borrow ₹35,000 crore more may prioritize paying its government debts over its new bank loans, a person aware of the matter said. Their concern centres around the company's ability to sustain loan repayments on the proposed loans if Vodafone Idea has to pay the adjusted gross revenue (AGR) dues to the government. The weakest player in India's telecom landscape has been steadily posting losses since FY17. On 19 May, the Supreme Court rejected petitions from Bharti Airtel Ltd and Vodafone Idea to waive some of the dues linked to their AGR. Vodafone Idea had sought a waiver on interest, penalty, and interest on penalty crossing ₹45,000 crore on the ₹83,400 crore pending AGR dues. The four-year moratorium on these payouts ends in September. In May, the operator told the Supreme Court that it would not be able to operate beyond the current financial year without bank funding. According to another person, whether banks approve the fresh loan proposal depends on promoter Aditya Birla Group injecting additional equity or providing a backstop to assure banks in case the telco's health worsens in future. To be sure, last financial year, the telco raised ₹4,000 crore in a preferential issue of shares to promoters, with Aditya Birla Group putting in ₹2,100 crore and Vodafone Group ₹1,900 crore. 'The company wants to raise ₹35,000 crore from banks; but for that, the promoters have to put in more equity or produce a corporate guarantee from a strong group company," said the first person cited above. 'In such a situation, if there is no additional skin in the game, bankers are not willing to put in more money." The second person said discussions between Vodafone Idea and a consortium of banks have been underway even before the AGR case returned to court. The person said there were a few virtual meetings between the bankers in the consortium and the management of Vodafone Idea a few months back, where lenders raised the two contentious issues on additional equity and promoter guarantee. 'This information is incorrect, and no such proposal is on the table," a spokesperson for Vodafone Idea said, without saying which proposal was being referred to. The spokesperson added: 'We remain in active discussions with lenders and will provide an update at the appropriate time." Also Read: Sword of Damocles hangs over Vodafone Idea's bank guarantees 'The position of lenders has not changed; the AGR setback in the Supreme Court has only made it worse," said the second person cited above. According to Care Ratings, bankers to Vodafone Idea include State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, and Axis Bank. While some have given term loans, others have provided bank guarantees. Its bank debt stood at ₹2,330 crore as on 31 March, as against ₹4,040 crore a year ago, as per disclosures made to analysts on 2 June. Email sent on Wednesday to the State Bank of India—Vodafone Idea's largest lender—remained unanswered. What complicates the matter is the government's decision not to convert more of the company's dues to equity. Following two rounds of such conversions, the government now owns a 49% stake in Vodafone Idea. Promoters Aditya Birla Group and Vodafone Group held a 25.6% stake, while the remaining are public shareholders. On Wednesday, telecom minister Jyotiraditya Scindia told CNBC TV18 in an interview that the government's stake in the telco 'will not go beyond the current 49%". While banks seem reluctant, the company is actively chasing loans. Akshaya Moondra, chief executive officer, Vodafone Idea told analysts on 2 June that the 'primary source of fundraising remains bank borrowing", which the telco is working on. 'The conversion of government dues to equity, along with the upgrade in the credit rating, are facilitating factors for us to take those discussions forward. Post the conversion, the engagement has started again seriously," Moondra told analysts. While the first round of equity conversion took place in 2023, the latest one happened in April, taking the total government stake to 49%. In May, Vodafone Idea's board approved raising ₹20,000 crore through a follow-on public offering (FPO), private placement, or other permissible mode. Also Read: Two months after second lifeline, Vodafone Idea again raises survival fears Analysts believe that raising debt is crucial to the telco's expansion plans. '...we believe the company's network investments remain contingent on debt raise which, in turn, is dependent on continued support/AGR relief from the Government of India. Stabilization of the subscriber base, along with further relief from the government of India remains imperative for Vi's long-term survival," analysts at Motilal Oswal Financial Services said in a note to clients on 2 June. The tussle over AGR has stretched out over almost 20 years. On 17 April, Vodafone Idea, which has 198.2 million mobile subscribers, submitted a representation to the government, seeking a waiver of interest, penalty and interest on penalty on its AGR dues. The telco said the government's AGR liability demand stood at ₹83,400 crore as of March end, with an annual instalment of approximately ₹18,000 crore due starting 31 March 2026 for the next six years. In comparison, Vodafone Idea generated ₹8,400-9,200 crore cash annually in the last three years.
Indian Express
01-07-2025
- Business
- Indian Express
Vodafone Idea's debt crisis: Time to buy or back away?
Investors often chase multibaggers that have grown from small-cap to mid-cap. But what about companies that have fallen from large-cap to mid-cap, losing 80–90% of their value? Do they present an investment opportunity? Sometimes, they do, but the way to look at their fundamentals is different. The focus shifts from revenue and earnings per share (EPS) growth to the balance sheet. Reducing debt and raising new capital takes centre stage. Addressing the so-called 'elephant in the room' is what drives their share price. One such stock is Vodafone Idea (Vi), which has been losing market share to rivals Reliance Jio and Bharti Airtel, and is trading at a 60% discount from its previous peak on June 28, 2024. The 'elephant in the room' in this case is Vi's accumulated interest and penalties on the unpaid spectrum charges and Adjusted Gross Revenue (AGR) dues to the Department of Telecommunications (DoT). Vi's deferred payment obligations now total a staggering Rs 1.83 lakh crore, more than twice its market cap of Rs 78,874 crore and over four times its FY25 revenue of Rs 43,571 crore. This mountain of debt has left Vi struggling to raise funds, invest in 4G and 5G infrastructure, improve services, and contribute to India's digital growth. Vi plans to raise Rs 50,000-55,000 crore to invest in 4G and 5G infrastructure over the next three years, increase subscriber counts, and average revenue per user (ARPU). Last year, it raised Rs 24,000 crore through follow-on public offer (FPO) and equity infusion by promoters and vendors. It used this money to make the biggest capital expenditure of Rs 9,500 crore since the merger of Vodafone and Idea in 2018. This capex slowed the subscriber churn rate. The company is looking to raise Rs 25,000 crore in bank debt to fund its capex. However, the ghost of AGR and spectrum payments from 2021 is affecting Vi's ability to raise debt. What Vi needs is a solution to the Rs 1.83 lakh crore AGR and spectrum obligation that is attracting 8% interest per year. Only the Department of Telecommunication (DoT) can resolve this, but finding a resolution to the problem is easier said than done. 1999-2016: It all began in 1999, when India's telecom sector shifted from a fixed license fee model to a revenue-sharing fee model, leading to a debate between DoT and telecom operators over the definition of AGR. While DoT said AGR includes revenue from both telecom and non-telecom services, operators said it should include only the revenue from core services. The issue reached the Supreme Court. 2016-2018: Meanwhile, the telecom industry witnessed the Jio moment. Reliance Jio Infocomm disrupted the market in 2016 by offering data plans at predatory prices. Before Jio, voice services accounted for 70% of the telecom revenue. But with data plans, voice calls became free. Vi and Bharti Airtel's average revenue per user (ARPU) fell as they were caught in the price war. To sustain, they had to upgrade their network for data, which increased their debt. Wireless Subscriber Base of Reliance Jio, Bharti Airtel, and Vi (in Rs crore) Data needs more spectrum, and Vodafone (411 MHz) and Idea (316 MHz) had a lower spectrum than Bharti Airtel (860 MHz) and Reliance Jio (650 MHz). Vodafone and Idea took the merger route to become India's largest telecom operator by market share in August 2018. However, the merger did not go as expected. Delays in system integration led to low connectivity, slow internet speed, and call drops, costing Vi its subscribers. The AGR and spectrum dues hit the balance sheet 2019-2021: In October 2019, the Supreme Court ruling widened the definition of AGR to include non-telecom revenue and ordered telecom companies to pay Rs 1.47 lakh crore in AGR and spectrum dues demanded by the DoT. Vi and other telcos added significant AGR and spectrum obligations to their balance sheet, with Vi taking the biggest hit of Rs 58,254 crore, followed by Airtel at Rs 43,980 crore.
Mint
28-06-2025
- Business
- Mint
Retail investors slam Vodafone Idea over user wipeout, stock crash
Retail shareholders ofVodafone Idea Ltd (Vi) raised concerns on Friday over the company's continued loss of subscribers and its fragile financial health. During the extraordinary general meeting (EGM) convened to approve the ₹20,000 crore fundraise, shareholders questioned the management about the lack of upside in the share price and a significant fall, particularly in the aftermath of the follow-on public offer (FPO) last year. The absence of Aditya Birla Group chairman Kumar Mangalam Birla from the meeting also drew concern, with a few shareholders expressing disappointment over his non-attendance. The government is the largest shareholder in Vodafone Idea with a 49% stake, followed by promoters—Vodafone Group at 16.07% and Aditya Birla Group at 9.5%. Retail investors own 14.96% of the company. 'Despite the previous fundraises, including the government conversion, there is no upside in the share price. In fact, the government's equity investment (via dues conversion) in the company has also gone into losses (at the current share price). If the management cannot handle the company, it should consider selling or surrendering it to the government," Santosh Kumar Saraf, a retail shareholder of the company, said during the meeting. Also Read: Faster WiFi plan hits spectrum interference worry Saraf wondered aloud what would happen if the company defaulted even after the fundraiser. Lately, the government has been exploring a resolution on the telecom operator's substantial dues. As of 31 March, Vodafone Idea's total government dues stood at around ₹2 trillion, including ₹1.19 trillion in spectrum dues and ₹83,400 crore adjusted gross revenue (AGR) dues. Mounting expenses In the absence of any relief from the government, starting 31 March 2026, Vodafone Idea will have to pay an annual instalment of over ₹18,000 crore for the next six years towards AGR and spectrum dues to the government. The dues are under moratorium, which will expire in September. In 2025-26 itself, Vodafone Idea will have to pay ₹16,428 crore towards AGR dues and ₹2,539 crore towards deferred spectrum dues. Going by the company's share price performance, the Friday closing share price of ₹7.40 is over 38% lower than the FPO listing price of ₹12 in April last year. In fact, the government's investment in Vodafone Idea through two equity conversions at ₹10 a share has also fallen by 26% at the current share price. In August 2018, when Vodafone Group completed its merger with Idea, the company's share price was ₹30. 'The company needs to focus on increasing its business. Many small investors are stuck in the company for the last so many years," said Redeppa Gunduluru, another retail investor, who has expressed concerns over the losses he incurred recently and the volatile share price. 'Vi's continued subscriber losses and weaker data net adds remain key concerns. Despite potential acceleration in network investments, we believe regaining subscribers will remain a tall ask for Vi, given that peers—with superior free cash flow generation and deeper pockets—can keep customer acquisition costs higher," said analysts at Motilal Oswal in a note dated 2 June. 'Further, with no relief so far on AGR dues (repayments commence March 26) and no breakthrough on the debt raise, we believe Vi is likely to face an annual cash shortfall of ₹20,000 crore and may be unable to meet its capex guidance of ₹50,000-55,000 crore over FY25-27," the analysts said. Narender Chauhan from Uttar Pradesh, another shareholder of the company, asked the management about the company's road map in the next 3-4 years, its plans for pan-India 5G coverage, and clarity on the satcom services launch after its recent collaboration with US-based AST SpaceMobile on direct-to-device connectivity. Dodging queries In an exchange filing on 30 May, Vodafone Idea said its board had approved raising another ₹20,000 crore through a follow-on public offering, private placement, or other permissible mode. The company said a capital raising committee will evaluate and decide on the potential route of fundraising. This fundraising approval comes at a time when the telecom operator is also looking to tie up ₹25,000 crore in bank debt to fund the capex for network expansion. When shareholders asked about the use of the ₹20,000 crore proceeds, the company's chief financial officer Murthy G.V.A.S. said, 'The proceeds will be used for capital expenditure." The management, however, did not address the shareholders' queries about the company's survival and revival concerns and the way forward. Also Read: Next-gen gadgets, WiFi speeds to get boost as India to open up new spectrum Notably, since the merger, Vodafone Idea has raised total equity of around ₹56,000 crore, out of which around ₹27,000 crore has been contributed by the promoters, the company told the Supreme Court in a recent plea to seek waiver on AGR dues from the government. The plea, however, was rejected by the court. In the petition, the telecom company had said it would not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues worth ₹83,000 crore linked to AGR. On the shareholder questions, Ravinder Takkar, the company's non-executive chairman, said, 'most of the questions were related to items outside the agenda items (of the EGM)." Takkar, however, asked the company to take note of some of the suggestions made by the shareholders. Pinning its hopes Vodafone Idea is set to incur capital expenditure of ₹5,000-6,000 crore for the first half of 2025-26 to enhance its network and infrastructure. However, its next leg of spending would be dependent on funds from banks, the company's CEO, Akshaya Moondra, had said in an earnings call on 2 June. 'I see no reason why the government should be constrained in any way to offer relief…," Moondra had said. Vodafone Idea is the most widely held stock, with over 6 million retail shareholders (more than the State Bank of India), according to the company's letter to the department of telecommunications on 17 April seeking further support. In May last year, Vodafone Idea said it would incur a capital expenditure of ₹50,000-55,000 crore over the next three years to expand its 4G network and launch its 5G service. "Completion of ₹25,000 crore debt-raising is key for executing Vi's ₹50,000-55,000 crore capex programme. Higher government flexibility around AGR dues offers a ray of hope," IIFL Capital said in a note on 2 June. Also Read: Will private 5G networks take off, finally? The retail investors also questioned the company's management about the fall in subscriber base and whether there are any plans to merge with state-owned BSNL. In an interview withMinton 23 April, Union communications minister Jyotiraditya Scindia said there are no plans to merge Vodafone Idea with BSNL. 'I do not think it is necessarily inefficient to have two competing businesses. There are multiple verticals where the government has competing businesses. Also, there was no physical cash outgo in this (Vodafone Idea) conversion. What the government has retained is an upside, no downside," Scindia had said. As of 31 March, Vodafone Idea had 198.2 million mobile subscribers. Even as Vodafone Idea has been losing subscribers for a long time now, the company's subscriber churn rate has slowed down during the March quarter. Compared to the loss of 5 million subscribers each in the September and December quarters, its subscriber churn slowed down to 1.6 million in the fourth quarter.
