VI stock grows by 8% on positive board announcement

Shares of Vodafone Idea Limited (VIL), one of the largest telecom operators in India, saw a significant rise of 8% to reach Rs 17.60 in morning trade today, building on the 6% increase on Thursday.

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The positive momentum in the stock price comes after the company’s board of directors announced that they will be meeting on February 27th to discuss multiple options for raising funds.

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The telecom operator has been struggling to keep up with its rivals due to its high debt burden and low average revenue per user (ARPU).

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In the third quarter of the fiscal year 2023-24, the company reported a net loss of Rs 6,985.9 crore, although it was marginally lower than the previous year

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Nuvama analysts have issued a “reduce” recommendation for the stock, highlighting the importance of monitoring the company’s capital-raising efforts and its ARPU trajectory.

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They also emphasize the need for VIL to avoid falling behind its peers in the rollout of 5G technology, which could further dent its competitiveness.

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