Business
Vodafone Idea to Raise Rs 45,000 Crore Through Equity and Debt Funding
Vodafone Idea‘s share price took a dip today as the telecom operator announced its board has approved fundraising of Rs 45,000 crore through equity and debt. The company plans to gather Rs 20,000 crore through equity or equity-linked instruments, with promoters also participating in the proposed equity raise. This decision from the telecom giant follows a notable upturn in operating metrics, including consistent growth in 4G subscribers and ARPU over the last 10 quarters.
The market reacted to this move, impacting Vodafone Idea’s stock performance, which closed at Rs 13.65, down by 13.99% from the previous day’s closing price of Rs 15.87. On the other hand, Bharati Airtel, Tata Communications, Tata Teleservices Maharashtra, and Railtel Corporation Of India also witnessed fluctuations in their stock prices.
During today’s trading session, Vodafone Idea’s stock ranged from a low of Rs 13.5 to a high of Rs 16.03. Over the past year, the stock has been in the range of Rs 5.7 to Rs 18.4, showcasing the volatility of the telecom industry.
In the options market, Vodafone Idea saw active call options at strike prices of Rs 16.0 and Rs 15.0, while active put options were observed at strike prices of Rs 13.0 and Rs 14.0, indicative of the market sentiment among investors.
Vodafone Idea’s strategic move to raise funds is aimed at strengthening its financial position and expanding its market reach amidst the competitive landscape dominated by players like Bharati Airtel, Tata Communications, Tata Teleservices Maharashtra, and Railtel Corporation Of India.