"While this FPO provides VIL with a way out and shift from its current 'full of concerns' status to finally 'going concern' - it also reinvigorates the sector," Nuvama institutional equities said in an analyst report.
It stressed that the telco would need to raise tariffs soon.
"Given the multiple rounds of unilateral indirect tariff hikes that Bharti has taken over the last two years - it is highly likely that it will follow suit if VIL decides to take any substantial across-the-board tariff hike. Jio, with its eyes on a potential IPO in the coming years, would not want to let go of this opportunity, to increase its profitability and return on capital employed - given it already has a 45 per cent subscriber share in the industry," it said.
This story is from the April 29, 2024 edition of Business Standard.
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This story is from the April 29, 2024 edition of Business Standard.
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