Vodafone Idea Struggles Despite Planned Fundraise 

Vodafone Idea, India’s struggling telecom operator, witnessed its shares plunge 12% on February 28th, despite announcing a massive Rs. 45,000 crore fundraising plan by its board of directors.

Market analysts remained cautious, expressing doubts over the fundraiser’s ability to single-handedly save Vodafone Idea. 

“Vodafone Idea Ltd will not be fully out of the woods, in our view,” stated Nomura, a brokerage firm, maintaining its “reduce” rating on the stock and setting a target price of Rs. 6.5. 

The company’s plan involves raising Rs. 20,000 crore through a combination of equity or equity-linked instruments, with the remaining Rs. 25,000 crore coming from debt. 

Vodafone Idea plans to hold a shareholder meeting on April 2nd, 2024. Following shareholder approval, the company expects to complete the equity fundraising process within the upcoming quarter. 

The share price dropped on February 28th, settling at Rs. 16.1 on the NSE, it has still gained 5.2% since news of the potential fundraise emerged on February 22nd. 

The company highlighted its improved operational metrics in a filing to the stock exchanges, citing consecutive growth in its 4G subscriber base and Average Revenue Per User (ARPU) .

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