Vodafone Idea The share may fall by 61 percent to the price of Rs 5. Analysts at global brokerage firm CLSA have warned that if Vodafone Idea’s subscriber base continues to decline, Vodafone Idea’s stock could fall by 61 per cent to Rs 5. The reason for this is the disillusionment of customers with the company. Let us tell you that the company has already lost 1.7 crore wireless customers in the last one year. According to the latest data released by the Telecom Regulatory Authority of India (TRAI), Reliance Jio added about 4.2 million wireless subscribers in January 2024, while Bharti Airtel added 0.75 million subscribers.
Approval to raise Rs 20,000 crore
The board of directors of debt-laden telecom company Vodafone Idea has received approval to issue equity shares or convertible securities on preferential basis. Now, it has been revealed that the company is possibly planning to launch an FPO in the coming weeks to raise ₹18,000-20,000 crore. This comes in the wake of another big news related to the company. Last Saturday, it was announced that the board has approved raising ₹2,075 crore from Aditya Birla Group by increasing the authorized share capital to ₹1 lakh crore, for which the company will seek shareholders’ approval on May 8. The offer involves the issuance of 1,395,427,034 equity shares.
the path ahead is not easy
Beyond capex and 5G rollout, Vi will face a financial crunch in FY26, when annual spectrum and AGR payments of $4 billion will be due unless the government repays the loan principal at the end of the moratorium, experts say. Does not convert into equity. Vi’s customer attrition is due to lower capex of ₹1,300 crore in nine months of FY24, down 54 per cent year-on-year, and 93 per cent lower than Bharti Airtel’s Bharat Mobile capex of ₹19,300 crore.
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