Vodafone Idea Shares Jump Over 6% on Rs 14,000 Crore Equity Infusion Reports

Shares of Vodafone Idea (Vi) witnessed a rally of more than 6% intraday on June 14 after reports emerged that Vi is planning to infuse Rs 14,000 crore in the coming months as part of its business revival plan. Last trading price of Vodafone Idea share is Rs 7.89 per share on BSE. At 9:40 am on June 14, 2023, Vodafone Idea share gained 6.49%.

Vodafone Idea stock's 52-week high price is Rs 10.08 per share and 52-week low price is Rs 5.70 per share, respectively. Its market capitalisation is Rs 38,359.60 crore. Vodafone Idea share delivered 12% return in last 1-month, 20% gain in last 3-months, and declined 10% in last 1-year.

The move is expected to see existing promoters Aditya Birla Group (ABG) and UK's Vodafone Group Plc infuse half the overall amount, reported Economic Times.
Soon after the news, shares of Vodafone Idea started gaining on both NSE and BSE.

As per the plan submitted to the government earlier this month, ABG and Vodafone Group will soon invest Rs 2,000 crore as fresh equity in the company. The promoters have already invested Rs 5,000 crore as fresh equity since the government's telecom revival package in September 2021, the report said, added Economic Times report.

As part of the revival plan, the promoters will work with the company to raise another Rs 7,000 crore either as direct equity or through convertible structures from external investors, the report said, further quoting the people cited above.

Meanwhile, Vodafone Idea managed to narrow its losses to Rs 6,419 crore during the fourth quarter of FY23 from Rs 6,563 crore a year ago.

On the other hand, revenue for the quarter declared at Rs 10,530 crore, up 2.9% higher compared to the same period last year. The revenue growth improved as a result of improvement in subscriber mix and 4G subscriber additions.

Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India's leading telecom service provider. The Company provides pan India Voice and Data services across 2G, 3G and 4G platform, as per its official website.