Vodafone Idea shares gain ahead of EGM today; key details 

Shares of Vodafone Idea Ltd advanced 3 per cent in Tuesday's trade ahead of the Extraordinary General Meeting (EGM) scheduled for later in the day. The EGM is scheduled post market hours at 4 pm. The company board has proposed to issue up to 1,75,53,19,148 equity shares of face value of Rs 10 each for cash at a price of Rs 11.28 per equity share, aggregating up to Rs 1,980 crore on a preferential basis.

Ahead of the meet, shares of Vodafone Idea climbed 2.79 per cent to hit a high of Rs 8.10 on BSE. The stock is down 52 per cent in the past one year.

The proposed preferential issue include offering up to 1,13,47,51,773 shares to Omega Telecom Holdings worth Rs 1,280 crore and up to 62,05,67,375 Usha Martin Telematics shares worth Rs 700 crore. Omega Telecom Holdings owned 0.40 per cent stake in Vodafone Idea as of September 30. Usha Martin Telematics held 0.13 per cent stake.

Vodafone Idea intends to use the received amount for making payments due to Indus Towers under the terms of the master service agreements executed between the Company and Indus for the provision of passive infrastructure services.

Recently, the telecom giant was in news after receiving a letter from the Department of Telecommunications (DoT) regarding the waiver of bank guarantees. Also, the promoter entity Vodafone Group settled Rs 11,650 crore as part of its outstanding dues secured against its stake in the domestic telecom operator. Bank guarantees were emerging as the stumbling block in Vodafone Idea's efforts to raise debt funding, Citi recently said in a note.

Centrum Broking expects Vodafone Idea to report decline of 40 lakh subscribers sequentially to 20.1 crore subscribers in the December quarter, with growth in average revenue per user (ARPU) growth of 5 per cent QoQ to Rs 164 per month, driven by July 2024 tariff hike and ongoing migration of users from 2G to 4G technology. It believes the management commentary on their ongoing capex activity would be key to watch out for going ahead.

For the December quarter, this brokerage sees Vodafone Idea to report a net loss of Rs 7,129 crore, which would be lower than Rs 7,741 crore in the same quarter last year. Losses for the September quarter stood at Rs 7,275 crore. Revenue for the quarter is seen rising 5 per cent YoY to Rs 11,206 crore.