Investors have received a 22 percent return on their Vodafone Idea shares over the past six months. In the past year, there has been a 117 percent increase. The board of the business has now approved raising Rs 2075 crore from Aditya Birla Group, the company’s promoter. Tell us what Vodafone Idea plans to do with this money and how it might affect the company’s stock.
Vodafone Idea, a telecom provider in financial distress, is currently looking to raise money. He’s had some success with this as well.
The company announced that the Aditya Birla Group, the promoter, has been approved to raise Rs 2075 crore by the board. Additionally, permission has been granted to raise the authorized share capital to Rs 1 lakh crore.
Vodafone Idea board approves Rs 2,075 crore raise from Aditya Birla Group, aims to lower debt and fund operations.@VodafoneGroup | #Vodafone #Industry #Fundshttps://t.co/8nrwSzb19c
— Financial Express (@FinancialXpress) April 7, 2024
Debt-ridden telecom firm Vodafone Idea on Saturday said its board has approved raising of Rs 2,075 crore from promoter Aditya Birla group and increasing its authorised share capital to Rs 1 lakh crore. https://t.co/10Gc0fFTSn
— Business Standard (@bsindia) April 7, 2024
📈💰 Big Move: Vodafone Idea gears up to boost its coffers by ₹2,075 cr, with a nod from its board to welcome investments from Aditya Birla Group.
Read on here⏬🚀📱https://t.co/0ZWXJVfpKu#OrianaInvestments #VodafoneIdea #Investment
— Moneycontrol (@moneycontrolcom) April 7, 2024
In an exchange filing, Vodafone Idea stated that it will ask shareholders to approve the current proposals at the EGM on May 8. Before this, at the EGM on April 2, the company was authorized to raise Rs 20,000 crore from shareholders through the issuance of securities.
With debt and equity, Vodafone Idea intends to raise Rs 45,000 crore. Currently, the company has a bank loan of about Rs 4,500 crore.
What will Vodafone idea do with the capital in India?
In the telecom sector, Vodafone Idea is currently far behind competitors like Reliance Jio and Bharti Airtel. To compete with Jio and Airtel in such a scenario, it will use the funds raised from equity and debt to enhance its services.
The deployment of a 5G network and expanding 4G coverage are Vodafone Idea’s main priorities. She also desires to expand her capabilities.
Vodafone Idea share price
In the most recent trading session, which took place on Friday, April 5, the share price of Vodafone Idea was Rs 13.35. Investors have received a 22 percent return on their investment in the stock over the past six months. In the past year, there has been a 117 percent increase.
Nonetheless, Vodafone Idea’s stock has dropped by 21% so far in 2024. The company’s fund-raising initiative may cause movement in its shares on Monday.
(This is not investment advice. Before buying or selling any shares, please consult your financial advisor.)
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