Vodafone Idea surges over 10% in 2 days as company almost finalises fundraising plan

The shares of Vodafone Idea have surged over 10 per cent in the last two trading sessions, as the company is set to raise funds by this month-end, Zee Business Senior Research Analyst Kushal Gupta decodes while explaining the reason for the rally in the telecom stock.

Increasing its 4G operations have definitely helped Vodafone Idea to sustain their subscribers: PTI

The shares of Vodafone Idea have surged over 10 per cent in the last two trading sessions, as the company is set to raise funds by this month-end, Zee Business Senior Research Analyst Kushal Gupta decodes while explaining the reason for the rally in the telecom stock.

Gupta says, many lenders of the company have a write-back, as it has promised to raise funds earliest or they have to do provisioning in the first quarter of FY22 if the company fails to do so.

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Since September 2020, Vodafone Idea is looking to raise funds to pay AGR dues and increase operations of the company. The board had given approval last year to raise funds around Rs 25,000 crore fund raising, Rs 15,000 crore through equity and Rs 15000 crore via NCDs

Oak Hill consortium, along with other private equity firms of the US are in talks with the third-largest telecom firm to raise capital. Similarly, CPPIB, CPDO, Norway’s government pension firm also in talks with Vodafone India for fund raising.

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Increasing its 4G operations have definitely helped Vodafone Idea to sustain their subscribers as well as the company is also stabilising its 5G operations.

Once a prominent stock on exchanges, is in desperate need of funds to pay the annual spectrum AGR payment, moreover, the competitors Jio and Airtel are financially strong comparatively. Amid weak network and low on operationability are the reasons for a decrease in subscribers count.

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