Vodafone Idea is reportedly in talks with three investors to raise funds to revive the business and improve its health. This comes after the telecom company announced its Q4 results, revealing a net loss of Rs 6,985.1 crore. Here are the details of the proposed plan:
Plan Details:
– According to sources, Vodafone Idea has proposed a plan to invest Rs. 14,000 crores for future growth under the business revival plan.
– The current promoters, Aditya Birla Group and the UK’s Vodafone Group, will contribute half of the total amount.
– The plan includes fresh equity infusion of Rs. 2,000 crores, which will be invested by ABG and Vodafone.
– The promoters had already invested Rs. 5,000 crores as fresh equity in September 2021 after the government’s telecom revival package was announced.
– Under the revival plan, the promoters will try to raise Rs. 7,000 crores either through equity or convertible structure from investors, which is yet to be confirmed.
Impact on the Share Market:
– After the news of the proposed investment, the Vodafone Idea share market witnessed a bullish trend, with the stock rising up to 10% in early trade.
– The company’s stock has been under pressure for some time due to the intense competition in the Indian telecom industry and the high debt burden, which is why investors are eagerly waiting for the revival plan to succeed.
Overall, the revival plan proposed by Vodafone Idea seems to be a positive development for the company and its shareholders. The infusion of fresh equity will help the company to revive its business and improve its health, which is much needed in the current competitive market.
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