Telcos Vodafone Idea and Bharti Airtel Climb Over 3% in a Tepid Market on Tuesday

  • Investing.com
  • Stock Market News
Telcos Vodafone Idea and Bharti Airtel Climb Over 3% in a Tepid Market on Tuesday
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The debt-ridden telecom provider Vodafone Idea (NS: VODA ) climbed 4.11% to Rs 11.4 apiece at 12:35 pm on Tuesday after the management informed a possible hike in mobile services rates this year but it will largely be dictated by the market’s reaction to the prepaid tariff increased in Nov 2021.

The company’s MD & CEO Ravinder Takkar noted that the minimum price of the recharge plan at Rs 99 for 28 days is not an expensive deal for those using 4G services. 

The price hike by telecom companies last year was done majorly to increase the ARPU. However, despite rising tariffs by 20-25% in Nov, the beleaguered telco’s ARPU declined about 5% to Rs 115, on a YoY basis.

Besides, its subscriber base also fell 8.3% to 24.72 crores YoY in Q3, while its consolidated losses shed 59.5% to Rs 7,230.9 crore in Q3.

Telecom giant Bharti Airtel (NS: BRTI ) announced on Monday that its Board would consider issuing equity shares through a preferential issue on January 28, though the amount of capital to be raised is not shared.

The telco informed that the issuance of shares will apply to non-promoters, meaning the promoter stake in the telco will dilute after the potential issue.

Brokerage firm Jefferies (NYSE: JEF ) noted that the potential capital raise could attract a strategic investor to help capitalize the company before the 5G spectrum auctions that are due for mid-2022, cited a Mint report.

Shares of Bharti Airtel were up 3.07% at Rs 711 apiece at 12:35 pm on Tuesday.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles