Vodafone Idea plans: Vodafone Idea has disclosed that its board has sanctioned the raising of up to Rs 2,075 crore from Oriana Investments, an entity affiliated with promoter Aditya Birla Group, via a preferential share issue.
In a regulatory disclosure to the exchanges, Vodafone Idea stated that its board has greenlit the allocation of 139.54 cr equity shares to Oriana Investments Pte Limited. These equity shares, with a face value of Rs 10 each, are being issued at an issue price of Rs 14.87 per equity share, inclusive of a premium of Rs. 4.87 per equity share. This amounts to a total of Rs 2,075 crore, and the allotment is made on a preferential basis. -Vodafone Idea plans
After the allotment of equity shares in the offering, the company’s paid-up equity share capital has increased from Rs 66,483.45 crore to Rs 67,878.88 crore.
Vodafone Idea recently garnered approximately 18,000 crore via a follow-on public offer, which concluded on April 22. This FPO was a component of the broader strategy of the debt-laden telecom operator to raise Rs 45,000 crore through a combination of debt and equity.
In the fourth quarter, Vodafone Idea posted a net loss of Rs 7,674 crore for Q4FY24, compared to Rs 6,418.9 crore from a year ago. Revenue from operations slightly rose to Rs 10,606 crore from Rs 10,531 crore in the corresponding quarter last fiscal year. The company’s average revenue per user (ARPU) saw a marginal increase to Rs 146 from Rs 145 in the previous fiscal year.
Nomura brokerage has recently upgraded Vodafone Idea Ltd from “reduce” to “neutral” and adjusted the target price to Rs 15 per share, representing a 13.2% increase from the previous close. This decision came on the heels of an improved outlook following the completion of its fundraising and inline fourth-quarter results.
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Over the past year, shares of Vodafone Idea surged by over 94 percent. On May 21, the stock closed 2.26 percent higher at Rs 13.60.
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