Vodafone Idea may need over $8 bn capital infusion to be a strong third telco: BoFA Securities

NEW DELHI: Vodafone Idea (Vi) may need a massive capital infusion of over $6-8 billion to strengthen its mobile network and cement its position as a strong third-ranked private telecom operator in India, said BoFA Securities.

“Basis our interactions with equipment vendors, we believe that a huge capital infusion ($6-8bn+) may be needed to support network rollout, close gaps on 4G, roll out 5G etc., to make the company a strong no. 3 competitor,” the American brokerage said in a research note on Sunday, cautioning that a large equity infusion may result in massive dilution risks for shareholders.