Shares of Vodafone Idea Ltd, a telecom service provider, saw modest gains on Monday, December 9, following the announcement that its board would meet to discuss a fund-raising proposal. This move is expected to help the company manage its debt and clear pending dues.
Vodafone Idea’s board of directors will convene on December 9 to review a proposal to raise up to ₹2,000 crore by issuing equity shares or convertible securities. The issue will be made on a preferential basis to the Vodafone Group, which is one of the company’s promoters. This step comes as part of the company’s ongoing efforts to bolster its financial position.
The Vodafone Group recently raised ₹2,802 crore by selling its remaining 3% stake in Indus Towers. A portion of these funds will be utilized to repay existing debt to lenders, while the remainder is likely to be injected into Vodafone Idea.
Vodafone Idea’s recent Follow-on Public Offering (FPO) saw the company issue shares at ₹11 per share in an effort to raise capital for its operations and debt reduction. The stock has faced significant challenges, with its price now down by 27% from the FPO issue price.
As of December 09, 2024, 1:20 PM, shares of Vodafone Idea are trading at ₹8.15 per share with a surge of 0.37% from its previous day’s closing price. Over the last month, the stock has seen a fall of 0.5%. The stock has a 52-week high and 52-week low of ₹19.18 per share and ₹6.61 per share respectively.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 9, 2024, 2:00 PM IST
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