Last Updated: February 23, 2024, 13:16 IST
Shares of Vodafone Idea Limited zoomed 9 per cent to Rs 17.60 within the morning commerce on February 23, extending positive factors for the second day after a 6 per cent soar within the earlier session.
While the corporate didn’t disclose the quantity it plans to boost, it could possibly be in a number of tranches by way of fairness devices, together with rights subject, preferential subject of shares, certified institutional placement of shares.
In the third quarter of the fiscal yr 2023-24, the corporate recorded a internet lack of Rs 6,985.9 crore, reflecting a lower of 12.56 p.c in comparison with Rs 7,990 crore within the corresponding interval of the earlier yr.
However, the income for a similar quarter amounted to Rs 10,673.1 crore, registering a slight improve of 0.49 p.c from Rs 10,621 crore within the third quarter of the previous fiscal yr.
The money-strapped operator has been struggling for some time to boost capital, which is of utmost significance given the excessive debt on books. Further, it wants heavy capital investments for community upgradation and rollout of 5G providers to compete with rivals Bharti Airtel and Reliance Jio.
As of December finish, Vodafone Idea’s gross debt stood at Rs 2.15 lakh crore, comprising deferred spectrum cost obligations of Rs 1.38 lakh crore, AGR legal responsibility of Rs 69,020 crore because of the authorities, dues of Rs 6,050 crore in the direction of banks and monetary establishments, and optionally convertible debentures amounting to Rs 1,660 crore.
On Thursday, Aditya Birla Group Chairman Kumar Mangalam Birla mentioned that the group stays dedicated and is making all efforts to rope in exterior buyers. The inventory had rallied following the feedback.
“We are making good progress but can’t put in a timeline…We remain very committed to Vodafone Idea and as we have said in the public domain, efforts are on to get outside investors,” Birla mentioned.
Nuvama analysts have issued a “reduce” advice for the inventory, citing considerations stemming from the corporate’s Q3FY24 earnings. The report highlights the significance of intently monitoring the capital-elevating efforts and the Average Revenue Per User (ARPU) trajectory. Additionally, Nuvama emphasizes the necessity for the corporate to stop falling considerably behind its friends within the rollout of 5G know-how.
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