Vodafone Idea Ltd IPO

The audit and review reports of the statutory auditors of the Company contain a paragraph on material uncertainty relating to going concern. There can be no assurance that any similar observations or remarks will not form part of the financial statements of the Company, or that such remarks will not affect its financial condition.

If the company does not continue to provide telecommunications or related services that are technologically up to date or keep up with changing consumer preferences, its may not remain competitive, and the company's business, prospects, results of operations and cash flows may be adversely affected.

The company requires significant capital to fund its capital expenditure and working capital requirements and if the company is unable to raise additional capital, its business, results of operations, financial condition and cash flows could be adversely affected.

The Company has incurred significant indebtedness and has not complied with certain covenants under its financing agreements. Its inability to meet the company obligations, including financial and other covenants, under its debt financing arrangements could adversely affect its business, results of operations, financial condition and cash flows.

Its telecommunication licenses and spectrum allocations are subject to terms and conditions, ongoing review and varying interpretations, each of which may result in modification, suspension, early termination, expiry on completion of the term or additional payments.

Non-payment of large dues to its vendors, especially tower vendors and equipment suppliers, could have an adverse effect on its business and operations. As at December 31, 2023 and December 31, 2022 and as at March 31, 2023, March 31, 2022 and March 31, 2021, the company had trade payables aggregating to Rs.138,078 million, Rs.148,274 million, Rs.136,422 million, Rs.132,551 million and Rs.134,025 million, respectively, payables for capital expenditure aggregating to Rs.69,262 million, Rs.63,838 million, Rs.66,052 million, Rs.67,793 million and Rs.84,224 million, and lease liabilities aggregating to Rs.367,121 million, Rs.385,207 million, Rs.361,800 million, Rs.228,434 million and Rs.214,099 million, respectively.

The company faces intense competition that may have an impact on its market share and profitability.

There are outstanding legal proceedings involving the Company, and certain Subsidiaries, Promoters, Directors and Group Companies. Any adverse outcome in any of these proceedings may adversely affect its reputation, business, operations, financial condition and results of operations.

Its Statutory Auditors have included certain qualifications or adverse remarks in the annexure to their Auditor's reports on the consolidated financial statements for the Financial Years 2023 and 2022 issued under the Companies (Auditor's Report) Order, 2020. If similar comments are included in the Statutory Auditors' reports or their annexures for its financial statements in the future, the trading price of the company Equity Shares may be adversely affected.

Aditya Birla Idea Payments Bank Limited, a Group Company and Associate of the Company, is currently under liquidation. The company cannot assure you that such liquidation proceedings will be concluded in a timely manner. All disclosures pertaining to Aditya Birla Idea Payments Bank Limited in the Red Herring Prospectus are based on publicly available information only.