The attention on Vodafone Idea shares intensifies on February 28 following the decision by the telecom operator’s board of directors to pursue fundraising amounting to Rs 45,000 crore.
In a bid to secure capital, the company aims to raise Rs 20,000 crore through a blend of equity or equity-linked instruments, with the remainder sourced through debt, with participation from promoters in the fundraising endeavor.
Vodafone Idea has scheduled a shareholder meeting for April 2, with plans to seek their approval before proceeding with the equity fundraising, anticipated to conclude in the upcoming quarter.
While Vodafone Idea shares concluded 4.45 percent lower on the NSE at Rs 16.1 each on February 28, they have witnessed a 5.2 percent increase since the board’s announcement of considering a fundraising initiative on February 22.
Citing a notable enhancement in operating metrics, the company stated, “The proposed fund-raise follows a marked improvement in operating metrics. The company has managed to grow its 4G subscriber base and ARPUs consecutively for the last 10 quarters,” in a filing with the bourses.
In the third quarter of the fiscal year 2023-24, Vodafone Idea reported a net loss of Rs 6,985.9 crore, marking a decrease of 12.56 percent compared to Rs 7,990 crore in the corresponding period of the previous year. However, its revenue stood at Rs 10,673.1 crore, reflecting a 0.49 percent increase from the year-ago period.
Vodafone Idea, a collaboration between Aditya Birla Group and Vodafone Group, offers nationwide voice and data services across 2G, 3G, and 4G platforms.
Disclaimer: LegalParivar.Com advises users to check with certified experts before taking any investment decisions.
