The third-largest telecom company is expected to increase its losses, analysts say, and it is likely to continue losing customers, due to its inability to compete effectively with Airtel and Jio in the 4G space.
The telephone company will release its fourth quarter results today after hours.
Vi, like its rivals Airtel and Jio, will not experience any revenue from interconnection usage charges. Vi’s quarterly loss is expected to widen to Rs 6,732 crore, due to a combination of falling operating profit and persistent customer losses.
The phone company has yet to make an announcement on its fundraising plans and whether any of the talks with global private equity players will bring some of the Rs 25,000 crore target.
With a booming AGR membership fee of Rs 50,400 crore to be paid in 10 annual installments, VI lenders are nervous. Domestic lenders may face an additional provisioning burden due to further delays in fundraising.
State Bank of India, Punjab National Bank, IndusInd Bank, ICICI Bank, Yes Bank, IDFC First Bank, ICICI Bank and HDFC Bank are among its main lenders.
Vi has been involved in funding talks with potential investors such as a consortium led by Oak Hill, US private equity firms including KKR, as well as the Canada Pension Plan Investment Board, the Fund deposit and placement of Quebec (CPDQ) and the Norwegian government pension fund. Discussions have not yet concluded.