Vodafone Idea shares in focus today as board approves Rs 45,000 crore fundraise. Details here

Shares of Vodafone Idea Ltd (VIL) will be in focus on Wednesday as the telecom operator said it plans to raise around Rs 45,000 crore via a combination of equity and debt. The company's board has approved equity fundraise of up to Rs 20,000 crore.

"The telco will call for a meeting of its shareholders on April 2, 2024, and post-shareholder approval it expects to complete the equity fund raise in the coming quarter. The promoters will also participate in the proposed equity raise, as committed earlier," Voda Idea stated in an exchange filing.

The company remains actively engaged with its lenders for tying-up the debt funding, which will follow the equity fundraise, it added.

VIL mentioned that the equity and debt fundraising will enable it to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion.

"These investments will enable the company to improve its competitive positioning and offer an even better customer experience. The proposed fundraise follows a marked improvement in operating metrics. The company has managed to grow its 4G subscriber base and ARPUs (average revenue per users) consecutively for the last 10 quarters. With the proposed fund raise and the positive operational developments, VIL is confident of effectively competing in the market," it further stated.

The telco could roll out its 5G services within six to seven months after it raises funds, CEO Akshay Moondra highlighted in a recent earnings call.

Voda Idea said its bank debt currently stands at below Rs 4,500 crore. The firm has been in talks for several months with lenders and investors to raise funds.

On technical setup, the counter was last seen trading lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150- and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 52.58. A level below 30 is defined as oversold while a value above 70 is considered overbought.

VIL shares on Tuesday settled 5.93 per cent lower at Rs 15.87. The stock has given multibagger returns in a year by rallying 132.36 per cent. Turnover on the counter was at Rs 187.26 crore with a market capitalisation (m-cap) of Rs 77,254.87 crore.

As of December 2023, promoters held 50.36 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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