This Telecom (BCBA:TECO2m) company, which is engaged in the business of Mobility and long-distance services, data cards, and trading of handsets, is in focus after the board plans to meet on December 9th, 2024 planning to raise Rs. 2,000 crores.
Price Movement
In Thursday’s trading session, Vodafone Idea Limited (NS:VODA) stock was up by 4.51 percent and touched a day’s high of Rs. 8.79. The stock reiterated from the day’s high and was trading at Rs. 8.10 which is 3.69 percent down from its previous close price of Rs.8.41. The stock has delivered a negative return of around 38 percent and underperformed nifty in the same period.
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What happened
The stock rose after the board planned to meet on December 9th, 2024 to consider a proposal to raise funds not exceeding Rs. 2,000 crores through the equity share issuance or convertible securities on a preferential basis to one or more entities belonging to Vodafone Group (LON:VOD).
The Vodafone Group holds around 3 percent of Indus Towers (NS:INUS) and will be in focus and the decision of the board will be clear. Vodafone Idea requires more funds to fund their operations going forward.
Financial Performance
Its Revenue from operations increased by 4.48 percent year on year from Rs. 10,750 Crores in Q2FY24 to Rs. 11,232 Crores in Q2FY25, accompanied by losses of Rs. 8,737.90 Crores to a loss of Rs. 7,175.9 Crores.
The profit before depreciation interest and tax for FY24 stood at 42.18 percent and the net profit margin stood at -73.24 percent. The fixed assets to sales ratio in FY24 was 3.71 times.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a share of 37.32 percent stake in Vodafone Idea. Foreign Institutional Investors (FIIs) hold 12.69 percent, Domestic Institutional Investors (DII) hold around 4.86 percent, the Government holds around 23.18 percent, and public holdings stand at 21.94 percent.
About the company
Vodafone Idea Limited which is branded as Vi, is a telecommunications provider in India. It was formed from the merger of Vodafone India and Idea Cellular in 2018. They offer a range of services which includes 2G, 3G, and 4G broadband, mobile telephony, and value-added services.
It holds around 14.4 percent market share in the Indian telecom sector with Jio dominating with 41.6 percent. Vodafone Idea’s business model focuses on providing affordable mobile services while improving their customer’s experience through extensive network coverage and digital solutions while catering to both individual and enterprise customers. The Average Revenue Per User (ARPU) stood at Rs. 156
Written by Santhosh S
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