Vodafone Idea Shares Jump 8% Amidst Fundraising Plans

23 Feb 2024 , 02:02 AM

In early trade on February 23, Vodafone Idea Limited’s shares shot up 8% to ₹17.60, continuing their upward trend from the previous day’s 6% increase.

The telecom operator announced that its board of directors will meet on February 27 to discuss all proposals for raising money in one or more tranches through a rights issue, additional public offering, or private placement of shares, including qualified institution placement, preferential allotment, or any other acceptable method. This announcement was made in response to the rally.

The company reported a net loss of ₹6,985.9 Crore for the third quarter of the fiscal year 2023–24, which is a decline of 12.56% from ₹7,990 Crore for the same period the previous year.

But compared to ₹10,621 Crore in the third quarter of the previous fiscal year, the revenue for the same quarter was ₹10,673.1 Crore, a tiny increase of 0.49%.

Analysts at Nuvama have recommended a ‘reduce’ buy on the stock due to concerns over the company’s Q3FY24 earnings. The significance of attentively observing the capital-raising initiatives and the Average Revenue Per User (ARPU) trajectory is emphasised in the paper. Furthermore, Nuvama highlights the necessity for the business to avoid falling well behind its competitors in the implementation of 5G technology.

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