Vi shares rise 22% to 1 yr high as company nears fundraising deadline
VIL’s wireless broadband (4G) net additions of 0.6 million in February is far lower than that of its key rivals Airtel and Jio
Shares of Vodafone Idea (Vi) jumped more than 22 per cent on Friday to hit a one-year high level as the company nears the end of its self-imposed deadline for fund infusion.
Speaking at a post-result analyst call after second quarter results were announced, Vodafone Idea Chief Executive Akshaya Moondra had said the equity funding of about Rs 2,000 crore should close by the end of the third quarter (October-December) of FY24.
Analysts believe the latest rise in share prices is in anticipation of this.
The company has been engaging with lenders for further debt fundraising as well as with other parties for equity or equity-linked fundraising, to make required investments for network expansion, including 5G rollout.
Moondra had earlier said the company’s promoters were also ready to contribute more equity, directly or indirectly. Former Chairman Kumar Mangalam Birla returned to the Vi board in April as an additional director, less than two years after leaving it.
The company has said multiple times that any new funding by banks will be used for the deployment of capital expenditure, and not to roll over existing dues. After those obligations are complete, it will aim to focus on deploying funds for rolling out 5G.
Vi’s two main competitors — Reliance Jio and Bharti Airtel — have already launched 5G services in 4,333 and 3,500 cities, respectively.
At the end of the second quarter (July-September) of FY24, the total gross debt (excluding lease liabilities and including interest accrued but not due) as of September 30, 2023, stood at Rs 2.12 trillion, comprising deferred spectrum payment obligations of Rs 1.35 trillion.
First Published: Dec 29 2023 | 7:21 PM IST