Vodafone Idea’s board approves raising funds of Rs 45,000 crore

Staying afloat by raising sizable funds

Vodafone Idea’s board has given its stamp of approval to raise up to Rs 45,000 crore. This hefty sum will be raised through equity and debt.

How will these funds be raised?

While Rs 20,000 crore will be raised through equity, the rest of the Rs 25,000 crore will be raised through debt.

What will these funds help in achieving?

These funds will help shape their efforts in bolstering their 4G presence. Also, it will be utilised in their 5G rollout and help them expand its capacity.

Transforming challenges into competitive advantages

Right now, Vodafone Idea lags behind in the race. However, this funding can act as a lifeline for this company and improve its competitiveness.

Sustained rise in performance with each quarter

As of Dec 31, 2023, the company had 21.5 crore subscribers. For the last 10 consecutive quarters, it has increased its average revenue per user (ARPU).

The immediate impact of raising these funds

As of Sept 2023, the company had a negative net worth of Rs -90,411 crore The influx of equity (Rs 20,000 crore) will bring this to Rs -70,411

What’s the latest news on Vodafone Idea’s debt situation?

The company already struggles with immense debt, having a total debt of over Rs 2.3 lakh crores.

How much is due to the government?

Out of which, it owes the government Rs 1.9 lakh crores, which will be a difficult liability to get off its shoulders.

Can raising these funds harm the business?

Raising this additional debt will not only burden Vi’s balance sheet but also add to their interest cost.

The effect on the share price

If you were wondering how it impacted the share price, the stock has plummeted 13.9 per cent today.

For other stories to keep you updated on the latest market news

See More