The Department of Telecommunications has approved the merger of telecom tower companies Bharti Infratel and Indus Towers. Apart from this, it is a piece of relief news for the troubled Vodafone Idea. At the same time, this decision of the Department of Telecommunications related to the increase in foreign direct investment (FDI) is important in terms of the merger of the two-tower companies. Apart from this, it can help Vodafone Idea to sell its stake in the tower company. Sources in a media reporter have reported that a final decision has been taken to increase the significant FDI for the merger of Indus-Infratel. At the same time, this is a lot of positive news for Vodafone Idea.
Vodafone Idea holds an 11.15% stake in Indus Towers. After the merger of these two towers, the company plans to sell its stake. At the same time, Vodafone Idea will raise about Rs 4,500 crore. Fundraising was very important for Vodafone Idea, along with a liability of over Rs 50,000 crore in the form of Adjusted Gross Revenue (AGR). Currently, the company paid Rs 3,500 crore to DoT last week. The approval comes after a series of meetings with top government officials of Kumar Mangalam Birla, chairman of Vodafone Idea.
Birla met Telecom Secretary Anshu Prakash on Tuesday and Finance Minister Nirmala Sitharaman on Wednesday. Apart from this, the tower companies had announced the merger in April 2018 but were waiting for the approval of DoT. The merger of Bharti Infratel and Indus Towers could form the world's second-largest tower company. The new companies will have more than 1,63,000 towers. In terms of the number of towers, it will be behind the China tower itself.