Vodafone Idea to Infuse Rs 14,000 Crore: Shares Jump Over 6%.

Rajesh
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Vodafone Idea (Vi) is set to infuse Rs 14,000 crore as part of its business revival plan, causing its shares to rally over 6%. Find out more about this development and the company's financial performance. 

Vodafone Idea (Vi) witnessed a significant surge in its shares, rising more than 6% intraday on June 14. The surge came in response to reports indicating Vi's plan to infuse Rs 14,000 crore in the coming months as a strategic move to revive its business. This article provides insights into the recent developments and highlights the financial performance of Vodafone Idea. 

Vodafone Idea to Infuse Rs 14,000 Crore: Shares Jump Over 6%

Vodafone Idea Share Performance:

As of the last trading session, Vodafone Idea shares were valued at Rs 7.89 per share on BSE. At 9:40 am on June 14, 2023, the shares experienced a 6.49% increase. The stock's 52-week high price stands at Rs 10.08 per share, while the 52-week low price is Rs 5.70 per share. Currently, Vodafone Idea's market capitalization is Rs 38,359.60 crore. Over the past month, the company's shares delivered a 12% return, with a 20% gain in the last three months. However, in the last year, the shares declined by 10%.

 Equity Infusion and Promoters' Role:

Vodafone Idea plans to infuse Rs 14,000 crore into its business. Reports suggest that existing promoters, Aditya Birla Group (ABG), and UK's Vodafone Group Plc, will contribute half of the total amount. The Economic Times reported that ABG and Vodafone Group are expected to invest Rs 2,000 crore as fresh equity, following a plan submitted to the government. In September 2021, the promoters had already invested Rs 5,000 crore as fresh equity under the government's telecom revival package.

 Fundraising and Financial Performance:

In addition to the promoters' contribution, Vodafone Idea aims to raise another Rs 7,000 crore through direct equity or convertible structures from external investors. This move is part of the company's revival plan. Notably, Vodafone Idea managed to reduce its losses to Rs 6,419 crore in the fourth quarter of FY23, compared to Rs 6,563 crore in the previous year. On a positive note, the revenue for the quarter reached Rs 10,530 crore, reflecting a 2.9% increase compared to the same period last year. The revenue growth can be attributed to an improved subscriber mix and the addition of 4G subscribers.

 About Vodafone Idea Limited:

Vodafone Idea Limited is a partnership between Aditya Birla Group and Vodafone Group, serving as India's leading telecom service provider. The company offers comprehensive Voice and Data services across 2G, 3G, and 4G platforms, as stated on its official website.

 Conclusion:

Vodafone Idea's announcement of a Rs 14,000 crore equity infusion has sparked optimism in the market, leading to a significant surge in its shares. With the participation of both existing promoters and potential external investors, the company aims to revitalize its operations and strengthen its financial position. As Vodafone Idea progresses with its business revival plan, investors and industry observers will closely monitor its future performance in the competitive telecom sector.

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