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Vodafone Idea Limited is a telecom company with operations in India, it focuses on mobile and long-distance services. On second-generation (2G), third-generation (3G), and fourth-generation (4G) platforms, it offers nationwide voice and data services.
Looking into the current news, the company wants to invest in the firm with growth capital of Rs14,000 crore, as part of its plan for corporate resurrection. This news came as a boon for the shares of Vodafone Idea, as on June 14, they increased by 9.98%.
Credits: Economic Times
According to ET, the existing promoters Aditya Birla Group (ABG) and Vodafone Group Plc from the UK would invest half of the entire sum.
The stock began at Rs. 8.48 per share on Wednesday, up from the previous closing of Rs. 7.71. At 10:30 a.m. on the BSE, it was trading at Rs. 8.11, an increase of 5.19 percent.
The plan, which was reportedly submitted to the government earlier this month, calls for both ABG and Vodafone Group to put in 2,000 crores as new equity in the business. The study also noted that the promoters had already contributed 5,000 crore in new equity since the government's September 2021 telecom revitalization package.
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It further added that the promoters will work with the business to obtain an additional 7,000 crore through direct equity or convertible structures from outside investors as part of the rehabilitation strategy.
Looking into the last quarterly result released, the telecom operator booked a net loss of ₹6,418.9 crore, which decreased compared to the year earlier where the loss stood at ₹6,563 crore in the same quarter.
- Charu Kapoor
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