Shares of Vodafone Idea rallied 9.98 percent on Wednesday, June 14 following a media report indicating the company's proposal to inject ₹14,000 crore equity in the near future as part of its business revival plan.
Half of the total amount will be infused by the existing promoters, namely Aditya Birla Group (ABG) and Vodafone Group Plc from the UK, ET reported.
During Wednesday’s trade, the stock opened at a price of Rs. 8.48 per share against the previous close of Rs. 7.71 and was trading at ₹8.11, up by 5.19 percent at 10:30 a.m. on the BSE.
The stock touched a 52-week-high of Rs. 10.10 on September 13, 2022, and a 52-week-low of Rs. 5.70 on March 31, 2023, indicating that at the current level, the stock is trading over 43 percent above its 52-week low and 19.3 percent below its 52 week high.
The stock has increased by almost 16 percent in the last one month. However, in the last six months, it has given a negative return of over 5 percent. Furthermore, the stock has declined by nearly 77 percent in the last five years.
According to the report, the plan was submitted to the government earlier this month, and both ABG and Vodafone Group are expected to invest ₹2,000 crore as fresh equity in the company. The report also highlighted that the promoters have already invested ₹5,000 crore as fresh equity since the government's telecom revival package in September 2021.
Additionally, it stated that as part of the revival plan, the promoters will collaborate with the company to raise another ₹7,000 crore either through direct equity or convertible structures from external investors.
In Q4FY23, the telecom operator reported a net loss of ₹6,418.9 crore, a decrease from the loss of ₹6,563 crore in the same period last year. The company's revenue from operations in the quarter increased by 3% to ₹10,532 crore from ₹10,239 crore, year-on-year, driven by the subscriber mix and the addition of 4G subscribers.
Mutual funds increased their holdings in Vodafone Idea from 20.48 crore shares to 28.64 crore shares in the past month. As of May 31, mutual fund managers handled Vodafone Idea shares worth ₹206 crore, compared to ₹142 crore as of April 30.
Vodafone Idea Limited is an India-based telecom service provider engaged in the business of mobility and long-distance services. It provides pan-India voice and data services across second-generation (2G), third-generation (3G), and fourth-generation (4G) platforms.
According to a MintGenie poll, an average of 17 analysts have a ‘SELL’ call on the stock.