• Source:JND
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Vodafone Idea: Shares of Vodafone Idea Ltd rose over 10 per cent during the afternoon trade on Friday following the company's announcement of the board meeting to consider fundraising. At around 1:40 pm, the stock of Vodafone-idea traded at Rs 18 up by over 10 per cent against the previous day's closing value. During the previous trading session, the share rose 6 per cent.

Although the company did not disclose the amount it intends to raise, it may be in one or more ways like equity instruments including rights issue, preferential issue of shares, and qualified corporate placement of shares.

In the third quarter of the financial year 2023-24, the telecom company registered a loss of Rs 6,985.9 crore net loss, 12.56 per cent lower than Rs 7,990 crore, which was a net loss in the same period last year.

But in the same quarter, the revenue was Rs 10,673.1 crore, slightly higher by 0.49 per cent from 10,621 crore in the previous year's third quarter.

The cash-strapped telecom operator has been struggling to raise capital for some time. Fundraising is an urgent necessity for the firm given the heavy debt on the books and rolling out 5G services, which will require huge capital investments to compete with rivals Bharti Airtel and Reliance Jio.

Vodafone Idea's total debt stood at Rs. 2.15 lakh crore till December end, of which spectrum tariff obligations amount to Rs 1.38 lakh crore, the amount, company had to pay Rs 69,020 crore AGR liabilities to the government, Rs 6,050 crore was due to banks and financial institutions, and Rs. 1,660 crore of convertible debentures.

Aditya Birla Group chairman Kumar Mangalam Birla said on Thursday that the group is committed and is making all efforts to attract outside investors. The comments sent shares soaring.

We are making progress but cannot set a timeline... We are committed to the Vodafone idea and as we have said in the public domain, efforts to get outside investors are continuing, said Birla.

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