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<ul><li>Vodafone-Idea’s shares are up 5% after the company completed its stake sale in Indus Towers for ₹3,760 crore.</li><li>There are also reports that a consortium led by Oaktree Capital has offered around $2 billion of capital to invest in the Vodafone Group’s Indian arm. </li><li>Analysts believe that fresh investments and price hikes to improve average return per users (ARPU) are the only things that can help its survival.</li></ul>Vodafone-Idea has been bleeding subscribers for years and now even its postpaid customers are under threat of being wooed away by <keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword>. According to analysts, the only way out for the company is with the fresh infusion of funds — and that’s what the company is doing. Vodafone-Idea shares were up nearly 5% today morning after the telecom player completed the sale of its stake in Indus Towers for ₹3,760.1 crore in cash. There are also <a href="https://www.bloombergquint.com/business/oaktree-varde-said-to-offer-2-billion-funding-to-vodafone-idea">reports</a> that a consortium backed by Oaktree Capital has offered Vodafone’s Indian arm $2 billion — approximately ₹14,800 crore — in funding. <div type="image" title="Copy of sbi share price (1)" msid="79316655" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone-Idea share price since September 7 when it was rebranded as Vi!&amp;lt;/p&amp;gt;"></div> Both of these moves tie in with <keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword>’s announcement in September where it revealed its plans to raise ₹25,000 crore by selling its shares and debt. New funds and price hikes are the only way to save Vodafone-Idea As Vodafone Idea continues to lose subscribers, it's also running out of money. This limits the company’s ability to invest in networks and adds to subscribers’ woes who switch over to other telecom operators. “We believe this spiral can be broken only with significant ARPU increase and fund infusion,” said Edelweiss Research in its report dated October 30. According to Axis Capital, Vodafone Idea’s future depends on it. The new mega tower company In the endeavour to raise new funds, Vodafone Idea has sold off around 11.15% of its holding in Indus Towers to make way for a newly merged mega tower company. The Vodafone Group will still hold around 28.12% in the new firm. Meanwhile, <keyword id="6354287" type="UNKNOWN" weightage="20" keywordseo="bharti-airtel">Bharti Airtel</keyword>’s stake reduces from 53.51% in Bharti Infratel to 36.7% in the combined entity. "Merger of Indus Towers Limited &amp; Bharti Infratel Limited has been completed today. The combined entity, to be renamed as Indus Towers Limited, is listed on the National Stock Exchange of India Limited &amp; BSE Limited," said Bharti Airtel in its filing with the Indian exchanges. Oaktree, Varde Partners and others offer $2 billion in funding The Oaktree-led consortium is formed of many companies, including Varde Partners. Sources told <a href="https://www.bloombergquint.com/business/oaktree-varde-said-to-offer-2-billion-funding-to-vodafone-idea">Bloomberg</a> that they have made an offer to infuse between $2 billion to $2.5 billion of capital into Vodafone Idea. But, this is only one of the many offers that the company is currently considering. Vodafone Idea is in talks with several other investors. The company has been reporting losses for nine consecutive quarters. And, since the merger of 2017, Vodafone Idea is yet to come up green in its annual reports. Vodafone Idea is the weakest of three telecom giants in India, the other two being Bharti Airtel and Reliance Jio. And its survival is the only thing that’s standing in the way of the Indian telecom market turning into a duopoly. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/pubg-mobile-india-was-supposed-to-launch-today/articleshow/79315462.cms">PUBG Mobile India was rumoured to launch today — but there is no official update from the company</a> <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-ril-infosys-vodafone-idea-apollo-hospitals-emami-route-mobile-syngene-and-others/articleshow/79314343.cms">Top stocks to watch — RIL, Infosys, Vodafone-Idea, Apollo Hospitals, Emami, Route Mobile, Syngene, and others</a> <a href="https://www.businessinsider.in/finance/banks/news/lakshmi-vilas-bank-is-the-fifth-financial-firm-after-ilfs-dhfl-yes-bank-and-pmc-bank-to-collapse-in-india/slidelist/79286096.cms">Lakshmi Vilas Bank is the fifth financial firm to collapse in India within the last 30 months</a>

Vodafone Idea soars nearly 5% on fund infusion from Indus Towers stake sale

<ul><li>Airtel has been one of the resilient stocks over the last few months even as the AGR issue and Coronavirus-fueled market crash has wiped off lakhs of crores of investor wealth.</li><li>The Airtel stock could rally thanks to the Jio-Facebook deal and the weakening of Vodafone Idea.</li><li>The Airtel stock has been given a ‘Buy’ rating with a target price of ₹606, which is an upside of more than 20%.</li></ul>Airtel was the market leader before the arrival of <keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword>, but it has since <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambanis-reliance-jio-becomes-the-largest-telco-by-revenue-and-subscribers-as-industry-shows-signs-of-recovery/articleshow/73667566.cms">ceded its lead position</a> to the Mukesh Ambani-owned telecom company. However, the gap between the two leading mobile service providers may be too huge, according to market experts. When it comes to the market cap, though, Airtel is 1.6 times smaller than Jio. Vodafone Idea, on the other hand, is 39 times smaller than Jio, which is currently valued at ₹4.4 lakh crore <a href="https://www.businessinsider.in/business/news/jio-a-3-year-old-telecom-company-is-now-bigger-than-hdfc-infosys-and-itc-and-indias-largest-bank/articleshow/75290132.cms">after the Facebook deal</a>. <div type="image" title="Jio market cap telecom companies" msid="75533839" hostid="261"></div> <div type="Article" hostid="261" msid="75290132" title="Jio, a 3-year old telecom company, is now bigger than HDFC, Infosys and ITC – and India's largest bank" mstype="2" mssubtype="0"></div> Analysts suggest that Airtel has been one of the more resilient stocks in the market even as the economic downturn and Coronavirus crisis have wiped lakhs of crores of investor wealth. Its strong financials, the weakening of Vodafone Idea and the Jio-Facebook deal have all contributed to Airtel’s stock scaling back to its 52-week high of ₹568. <div type="image" title="Airtel stock 01_01_20 to 04_05_20." msid="75533863" hostid="261"></div> “Airtel has been able to raise funds to meet current AGR demands. In the short-term, Airtel will be the beneficiary if there is any weakening of Vodafone Idea,” said Mahesh Uppal, Telecom Analyst &amp; Director, Com First India told Business Insider. “It is often forgotten that, in general, Airtel and Vodafone, being early entrants to the market, have a higher quality of subscribers, in terms of paying capacity, than their competitors. If the AGR issue does not get resolved to the comfort of Vodafone Idea, Airtel will be best placed to benefit,” he further added. "Expects positive for Bharti Airtel after US based fund Silver Lake partner bought Reliance Jio stake at a premium. Higher valuation on Reliance Jio may positive on Bharti Airtel," <a href="https://twitter.com/MotilalOswalLtd/status/1257514187766460416" data-type="tilCustomLink" style="">said</a>Motilal Oswal. AGR, short for adjusted gross revenue, is a revenue sharing agreement between the Indian government and the telecom companies. According to this agreement, the telecom companies have to share a percentage of their AGR as annual license fee and spectrum usage charges. The Supreme Court recently ordered companies to pay up a disputed amount retrospectively for over a decade. According to the Department of Telecom estimates, Airtel owes ₹35,586 crore to the government. What are the analysts saying? “We retain our constructive view on Bharti Airtel (Bharti) considering its ability to capitalise on the higher data demand tailwind leveraging its strong balance sheet and network capacity,” said Edelweiss Research in its report dated April 20 where it pegged the target price for Airtel at ₹606. <table><tbody><tr><td>Brokerage</td><td>Target price for Airtel</td></tr><tr><td>Edelweiss </td><td>606</td></tr><tr><td>Angel Broking</td><td>594</td></tr></tbody></table> India is <a href="https://www.businessinsider.in/tech/news/heres-why-facebooks-mark-zuckerberg-is-paying-top-dollar-for-a-stake-in-mukesh-ambanis-reliance-jio/articleshow/75286331.cms">expected to add</a> more than 150 million active internet subscribers in the next 12 months, according to IAMAI. Given the weakening of Vodafone-Idea, both as a firm and a brand, the India telecom market is narrowing down to a duopoly between Reliance Jio and Airtel. The difference in market value of the two telcos is just too huge given the growth potential and the lack of competition. See also: <a href="https://www.businessinsider.in/business/telecom/news/india-is-changing-its-mobile-habits-and-that-can-help-airtel-and-vodafone/articleshow/75152973.cms">India is changing its mobile habits and that can help Airtel and Vodafone</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-signs-7636-crore-deal-with-nokia-to-enhance-4g-network-lay-foundation-for-5g-network/articleshow/75423000.cms">Airtel signs ₹7,636 crore deal with Nokia to enhance 4G network, lay foundation for 5G network</a> <a href="https://www.businessinsider.in/business/corporates/news/reliance-jio-stake-sale-to-silver-lake-boosts-ril-share-valuation/articleshow/75526873.cms">Reliance Jio’s valuation jumps more than half a billion dollars in just 12 days, thanks to Silver Lake</a>

Airtel shares set for a catch up rally after Reliance Jio takes a huge valuation lead

As soon as Idea Cellular announced news of <a href="http://www.businessinsider.in/idea-to-merge-with-vodafone-india-time-to-say-hello-to-indias-biggest-telco/articleshow/57728557.cms">forthcoming merger</a> with <a href="http://www.businessinsider.in/vodafoneindia-just-partnered-with-amazon-prime-video/articleshow/57717680.cms">Vodafone India</a> and <keyword id="2099963" type="UNKNOWN" weightage="100" keywordseo="Vodafone-Mobile-Services">Vodafone Mobile Services</keyword> (VMSL), its stocks dipped by 15%. 
 The deal has put Idea's implied enterprise value at $10.8 billion, as against the $12.40 billion valuation for <keyword id="6354923" type="COMPANY" weightage="100" keywordseo="Vodafone-India">Vodafone India</keyword>. 
 
After the stock fell 14.73%, it stood at Rs 92 on BSE. Earlier, it had risen 14.68% in the early trade and hit a high of Rs 123.75. 
 
Also read: <a href="http://www.businessinsider.in/airtel-vodafone-and-idea-are-facing-the-heat-from-jio-as-they-may-lose-upper-end-customers/articleshow/57287150.cms">Airtel, Vodafone and Idea are facing the heat from Jio as they may lose upper-end customers</a> 
 
In its filing to BSE, <a href="http://www.businessinsider.in/with-idea-making-incoming-calls-free-national-roaming-willsoon-be-a-matter-of-past/articleshow/57606367.cms">Idea</a> had said that after the deal, its promoters will hold a 26% stake in the resultant entity, while <keyword id="15492" type="CITY" weightage="100" keywordseo="Vodafone">Vodafone</keyword> will hold 45.10% after its promoters would transfer a 4.9% stake to Idea promoters for Rs 3,874 crore in cash. Rest of the stock would be for the public. 
 
Also read: <a href="http://www.businessinsider.in/reliance-jio-will-be-unfazed-by-vodafone-idea-merger-heres-why/articleshow/57509811.cms">Reliance Jio will be unfazed by Vodafone-Idea merger. Here’s why</a> 
 
"We expect the combine entity will have about 40 per cent revenue share. In the process of integration and combining the two big operations, they might lose some revenue market share to Jio or to other incumbents. We estimate about $11-12 billion revenue and Ebitda margins of 28-30 per cent, once these firms combine their operations." Nitin Soni of Fitch Ratings told ET. 
 
Idea also announced that it would issue equity shares to Vodafone India after the scheme of amalgamation with VMSL. This would be equal to 47% of the post-issue paid-up capital of the company on a fully-diluted basis. 
 
The company also said that after the merger, shares issued to Vodafone India in pursuant of the merger of VMSL with the company would stand cancelled. 
 
(Image source: Forbes)

Idea-Vodafone merger dips Idea stocks by 15%

<ul><li>Vodafone Idea’s stock crashed by 27% in today’s trade, closing at ₹6.7 per share. </li><li>As much as ₹1,400 crore, about $200 million, was lost in a single day’s trade.</li><li>Vodafone Idea posted a net loss of ₹4,874 crore, or over $700 million, in the first quarter of the current financial year. </li></ul> Vodafone Idea’s stock crashed by a massive 27% in today’s trade, closing at ₹6.7 per share. It means that as much as ₹1,400 crore, about $200 million, was lost in a single day’s trade. On Friday (July 26), Vodafone Idea posted a net loss of ₹4,874 crore, or over $700 million, in the first quarter of the current financial year. “Vodafone Idea’s results disappointed with revenues, EBIDTA (pre-tax profits), and a loss ---all missed estimates,” said a report by CLSA, which retained its ‘Sell’ recommendation. In the long-run Top telecom operators Vodafone and Idea Cellular had merged last year, and these synergies will start paying off in a year. “We are delivering on our stated strategy, although the benefits are not yet visible in our top line. We are well on track to deliver our synergy targets by Q1 of 2020-21. We expect these factors to increasingly contribute to our financial performance going forward,” said Balesh Sharma, CEO Vodafone Idea. But the shareholders were clearly not in the mood to wait so long. The company, in spite of its size, is unable to keep up with competition from Reliance Jio, which has been gaining subscribers at <a href="https://www.businessinsider.in/mukesh-ambani-owned-reliance-vs-vodafone-idea-vs-airtel-vs-bsnl-january-to-april-2019-subscriber-data/articleshow/69928185.cms">Vodafone Idea’s cost</a>. Vodafone Idea has been losing in terms of quantity and quality of subscribers as well. Its average revenue per user rose by a mere 4% to ₹108. Added to that, some of its best paying customers also downtraded which means went in for cheaper plans, leaving it with fewer profits.

Vodafone Idea lost $700 million in 3 months, but its investors lost $200 million in a day

<ul><li>One of India's top three telecom operators is crashing fast.</li><li>The share price fell another 9% on Friday after a shocking loss in the second quarter.</li><li>The ₹50,000 crore plus loss posted by Vodafone-Idea is the highest in the history of corporate India.</li></ul>One of India's top three telecom operators is crashing fast. The share price fell another 9% as trading opened on Friday, spooked by a shocking loss in the second quarter. The ₹50,000 crore plus loss posted by Vodafone-Idea is the highest in the history of corporate India. While the stock manage to recover from the lows it has already lost a lot of sheen. 
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 A day before Vodafone Idea posted India’s largest ever quarterly net loss of ₹50,000 crore, its stock had crashed 20%. The stock which has been taking a beating ever since Supreme Court gave a verdict which went against them in the aggregate gross revenue case, it has little to lose after yesterday’s loss announcement. The market capitalisation of Vodafone-Idea was just about ₹8,476 crore ($1.2 billion) before trading opened on Friday (November 15). That is barely a tenth of the ₹₹44,150 crore that it owed Department of Telecommunications which it has to pay p in three months. "We have accounted for the estimated liability of Rs 27,610 crore related to licence fee and Rs 16,540 crore billion related to spectrum usage charges up to September 30, 2019, including the interest, penalty and interest thereon of Rs 33,010 crore," the company said on a filing on the stock exchanges. Added to that, the British parent of the company Vodafone Plc also went deep into red because of its flailing India business. Two days back, the CEO of the parent Nick Read said that India business might be liquidated if the government does not offer any relief over the spectrum dues. In late October, both Bharti Airtel and Vodafone Idea have lost a decade old case on the definition of AGR dues. While the telecom companies had claimed that the definition should not include non-telecom earnings, DoT said it should. Supreme Court also agreed with DoT leading the sector into a fresh crisis, amongst the many it is battling. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/vodafone-idea-posts-a-historic-50000-crore-loss-over-agr-dues/articleshow/72064458.cms" data-type="tilCustomLink" target="_blank">Vodafone Idea has to pay ₹44,150 crore to DoT in 3 months -the liability that made it post a historic loss</a>

Vodafone-Idea is now a ₹3 stock after a shocking quarterly loss

<ul><li>The board of directors at Vodafone Idea have approved a ₹250 billion fund raising plan.</li><li>This is expected to be the largest ever rights issue in the Indian corporate sector. </li><li>The funds will enable Vodafone Idea to take on market incumbents Jio and Airtel more effectively in terms of capital expenditure and low prices. </li></ul> The board of directors at Vodafone Idea have approved a $3.5 billion (₹250 billion) fund raising plan that will give the recently-merged telecom services behemoth enough ammunition to take on the mighty Reliance Jio, owned by the richest man in Asia, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>. This is expected to be the largest ever rights issue in the Indian corporate sector. In addition to enabling Vodafone Idea to take on market incumbents Jio and Airtel more effectively in terms of capital expenditure, the proceeds of the issuance will also be used to cull Vodafone's debt burden. Nearly two-thirds of the funds to be raised, or about $2.5 billion, will be secured from the promoter group Vodafone and <keyword id="44373" type="COMPANY" weightage="20" keywordseo="Aditya-Birla-Group">Aditya Birla Group</keyword>. Vodafone India's parent will provide $1.5 billion while the Aditya Birla Group will provide the remainder. Furthermore, if any portion of the rights issue is unsubscribed, the promoters will take up the slack. Investors reacted favourably to the commitment of the company's largest shareholders as the shares of the merged entity were up 3.5% when the National Stock Exchange opened this morning. Vodafone owns a 45.2% in the combined entity while the Aditya Birla Group owns 26%. After the completion of their merger last year, Vodafone-Idea, which began operations on 1st September, became India's largest telecom services provider by market share (32%) and subscribers (422 million). However, the entity's growth in revenue and subscribers significantly trails that of Jio and Airtel. In fact, it even lost 6.5 million subscribers between September and October 2018, according to a report by the Telecom Regulatory Authority of India. The funds will help it sustain low prices and match the deals offered by its competitors. Analysts are unsure, however, whether ₹250 billion will be enough for Vodafone Idea to take on Jio, which spent ₹140 billion on capex alone in the quarter ended December 2018. The merged entity might be compelled to undertake another rights issue or a bond sale later in the year. Reliance Jio’s entry into the telecom market in September 2016 had triggered an intense tariff war, driving down the cost of data in the world’s second largest market with over a billion mobile phone subscribers. While customers rejoiced, Jio's competitors were forced to contend with a loss of profitability and market share. Nearly two years into the battle for dominance, Jio with its deep pockets has kept the ante up while many others have bled to irrelevance. SEE ALSO: <a href="https://www.businessinsider.in/idea-and-vodafone-are-a-step-closer-to-becoming-indias-largest-telecom-operator/articleshow/64461224.cms">Idea and Vodafone are a step closer to becoming India’s largest telecom operator</a> <a href="https://www.businessinsider.in/two-years-on-reliance-jio-continues-to-dominate-indian-telecom-market-beating-global-giants/articleshow/67380627.cms">Two years on, Reliance Jio continues to dominate Indian telecom market, beating global giants</a>

You Searched For "vodafone idea stock market" and got 6 results

Vodafone Idea soars nearly 5% on fund infusion from Indus Towers stake sale

Prabhjote Gill

Airtel shares set for a catch up rally after Reliance Jio takes a huge valuation lead

Rounak Jain

Idea-Vodafone merger dips Idea stocks by 15%

BI India Bureau

Vodafone Idea lost $700 million in 3 months, but its investors lost $200 million in a day

Katya Naidu

Vodafone-Idea is now a ₹3 stock after a shocking quarterly loss

Katya Naidu

Vodafone Idea is readying a $3.5 billion warchest to take on Jio-- and markets are cheering

Sriram Iyer

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