Vodafone shares on radar after board gives nod to Rs 20,000 Cr fundraising
The equity and debt fundraising will enable the company to make investments towards significant expansion of 4G coverage, 5G network rollout and capacity expansion, the company said.
Shares of Vodafone Idea fell on Wednesday after the company’s board approved a plan to raise funds of up to Rs 20,000 crore through equity and/or equity-linked instruments. Vodafone Idea shares fell 4.9 per cent to Rs 15.1 apiece in early deals on BSE.
“The board has also authorized the management to appoint various intermediaries, including bankers and consultants, to carry out the fundraising. The company will convene a shareholders’ meeting on April 2, 2024 and upon shareholder approval, expects to complete the capital increase in the next quarter,” Vodafone Idea said in a statement released after trading on Tuesday. reported Sea Business.
Vodafone Plans to raise around Rs 45,000 Crore
Vodafone Idea also said it plans to raise Rs 45,000 crore through equity and debt. “Through a combination of equity and debt, the company plans to invest approximately Rs. 45,000 crores. The company’s bank debt is currently less than Rs. 4,500 crores. The equity and debt fundraising will enable the company 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 position and provide an even better customer experience,” the company said. The company said in a statement that the fund would be raised through a combination of equity and/or equity-linked instruments.
How brokers view Vodafone Idea shares
After Vodafone’s board announced its plan, CLSA maintained a ‘sell’ call on Vodafone Idea shares with a target of Rs 5, and the brokerage expects a financial crunch in FY26CL when annual spectrum and adjusted gross revenue related payments will be due. In 12 months, Vodafone Idea has achieved a market share of 120 basis points, CLSA said.
Nomura maintained a ‘downgraded’ rating on Vodafone Idea shares with a target of Rs 6.5. Nomura also said it will be a significant positive for Vodafone Idea if it can bring in external investors.
(Disclaimer: The above article is for informational purposes only and should not be considered investment advice.)