Vodafone Idea stock tanks 12% as board approves ₹20,000 cr equity fundraise
Through a combination of equity and debt, the company plans to raise around ₹45,000 crore.
Through a combination of equity and debt, the company plans to raise around ₹45,000 crore.
Vi is facing capital constraints, but is in a much better position than telcos that went defunct in the not-so-distant past, says ICICI Securities
This disruptive move can halt incremental tariff increases for 2G and help Reliance Jio gain share in that segment, say analysts.
Shares of Vodafone Idea plunged 4% to ₹7 apiece on the NSE.
KM Birla has returned to the board of Vi as an additional director (non-executive and non-independent) with effect from April 20, 2023.
The telecom sector's postpaid ARPU is estimated to have declined to around ₹245 in FY23 from around ₹275 in fiscal FY21.
Vi has issued 1,200 debentures of the face value of ₹10 lakh each to ATC Telecom Infrastructure, while the balance 400 securities will be allotted later.
Shares of the company jumped more than 13% in the intraday trade on Wednesday expecting a positive response from the government.
The banks want the government to come in as the largest stakeholder to release ₹20,000 crore loan to VIL.
Vodafone Idea wants to complete ₹20,000 crore fundraising from the lenders and new investors before 5G auctions begin in July.