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.
The teleco’s board will meet on February 27, 2024, to consider and evaluate proposals for raising of funds in one or more tranches via equity or debt instruments.
Following the development, the share price of the telecom operator plunged 6.06% to hit an intraday low of ₹15.96 apiece on the BSE.
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
Reliance Jio added 34.7 lakh mobile subscribers in September, followed by Airtel with 13.2 lakh new users, while Vodafone Idea lost 7.5 lakh customers.
The statement comes after several news reports during the weekend stated that US telecom majors -- Verizon, Amazon and Starlink are in the race to acquire the debt-ridden telecom company.
This disruptive move can halt incremental tariff increases for 2G and help Reliance Jio gain share in that segment, say analysts.
Vi’s woes will not end till government realises it is the “beneficial owner” and not the company’s promoter.
Shares of Vodafone Idea plunged 4% to ₹7 apiece on the NSE.
During the month under review, Jio added 10,04,797 mobile subscribers as against 16,58,448 subscribers in January.