Vodafone Idea shares fell as a lot as 12 p.c on February 28 even after the board of administrators of the cash-strapped telecom operator determined to lift funds to the tune of Rs 45,000 crore. Brokerages remained cautious, saying that the fundraising alone may not be sufficient to rescue the corporate, because it misses the 5G bus.

“Vodafone Idea Ltd is not going to be totally out of the woods, in our view,” said Nomura, which retained its ‘reduce’ call on the stock, with a target price of Rs 6.5.

At 10.50am, Vodafone Idea inventory was buying and selling at Rs 14 on NSE.

The firm stated it’ll elevate Rs 20,000 crore by a mixture of fairness or equity-linked devices and the remainder by debt and promoters may even take part within the proposed fund-raising.

Despite the fundraise, brokerages retained their ‘scale back’ calls. “f VIL is able to tie up the entire fund raise, it will be a material positive; however,
VIL will not be fully out of the woods, in our view,” stated Nomura.

Vodafone Idea stated it’ll convene a gathering of its shareholders on April 2, and after getting their approval, it expects to finish the fairness fund-raise within the coming quarter.

On February 28, the Vodafone Idea shares settled decrease by 4.45 p.c on the NSE at Rs 16.1 every. However, because the announcement of the board of administrators contemplating a fundraise on February 22, shares of the corporate have gained 5.2 p.c.

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“The proposed fund-raise follows a marked improvement in operating metrics. The company has managed to grow its 4G subscriber base and ARPUs consecutively for the last 10 quarters,” stated the corporate, in a submitting with the bourses.

In the third quarter of the fiscal 12 months 2023-24, the telecom operator 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 12 months. However, its income got here in at Rs 10,673.1 crore, a rise of 0.49 p.c from the year-ago interval.

Vodafone Idea is a partnership between Aditya Birla Group and Vodafone Group. The firm offers pan India voice and information providers throughout 2G, 3G and 4G platforms.

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