According to Motilal Oswal, The Government of India (GoI) has approved the conversion of Vi’s upcoming spectrum dues repayment into equity, in line with the provisions in 2021 telecom relief measures. However, they believe this measure can bring some medium-term cash flow ease, “but stabilization of its subscriber base, longpending debt raise, and further relief on AGR dues remain vital for Vi’s long-term survival. “
Motilal Oswal retained the Sell rating on Vi with a revised target price of Rs 6.50/share. They remain Neutral on Indus Towers and added that they would use any bounce to reduce exposure.