Vodafone Idea shares tumble 14%, mcap erodes ₹10,806.7 cr
Feb 28, 2024, 17:47 IST
New Delhi, Shares of debt-laden Vodafone Idea Ltd on Wednesday plummeted 14 per cent after the company's fundraising announcement failed to lift investors' sentiment. The stock plunged 13.99 per cent to settle at Rs 13.65 on the BSE. During the day, it tanked 14.93 per cent to Rs 13.50.
It fell 13.88 per cent to settle at Rs 13.65 on the NSE. During the day, it slumped 14.82 per cent to Rs 13.50 -- its lower circuit limit.
The company's market capitalisation (mcap) eroded by Rs 10,806.71 crore to Rs 66,447.95 crore.
Struggling telecom firm Vodafone Idea on Tuesday said its board has approved raising up to Rs 20,000 crore in equity from promoters and other investors by June as it looks to shore up finances for the much-delayed 5G rollout and strengthening 4G services.
The debt-laden firm, where the government also holds just over 33 per cent equity stake, plans to raise Rs 45,000 crore through a mix of equity and debt with hopes of matching services offered by rivals Jio and Bharti Airtel that could arrest subscriber churn.
The fundraising, when it happens, will also arm Vodafone Idea with firepower to improve competitive positioning in the Indian telecom market, where it trails larger rivals Reliance Jio and Bharti Airtel, by a wide margin.
Vodafone Idea has been fighting a desperate battle for survival -- it has a debt of Rs 2.1 lakh crore, is reporting quarterly losses, and is haemorrhaging subscribers month after month.
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It fell 13.88 per cent to settle at Rs 13.65 on the NSE. During the day, it slumped 14.82 per cent to Rs 13.50 -- its lower circuit limit.
The company's market capitalisation (mcap) eroded by Rs 10,806.71 crore to Rs 66,447.95 crore.
Struggling telecom firm Vodafone Idea on Tuesday said its board has approved raising up to Rs 20,000 crore in equity from promoters and other investors by June as it looks to shore up finances for the much-delayed 5G rollout and strengthening 4G services.
The debt-laden firm, where the government also holds just over 33 per cent equity stake, plans to raise Rs 45,000 crore through a mix of equity and debt with hopes of matching services offered by rivals Jio and Bharti Airtel that could arrest subscriber churn.
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Vodafone Idea has been fighting a desperate battle for survival -- it has a debt of Rs 2.1 lakh crore, is reporting quarterly losses, and is haemorrhaging subscribers month after month.