Indus Towers a key beneficiary of govt's move on Vi: Analysts

THE CENTRAL GOVERNMENT'S decision to convert part of Vodafone Idea's spectrum debt into equity will not only give the cash-strapped telco some much-needed cash flow relief, but will also translate to improved growth prospects for Indus Towers, analysts said.

- URVI MALVANIA

The tower company, which counts Vodafone Idea as one of its major customers, and will now benefit from the telco's accelerated network expansion, and will have better visibility on repayment of dues by Vodafone Idea.

"This (the debt-to-equity conversion in Vodafone Idea) is positive for Indus in the medium term, unless Vi's RMS (revenue market share) falls meaningfully below its current ~15% warranting a reduction in equipment intensity," analysts from IIFL noted.