Shares of Vodafone Idea fell 10% to hit a lower circuit of Rs 14.30 after the company’s board approved raising Rs 45,000 crore through a combination of debt and equity.
On February 27, the company’s board approved to raise funds through equity and equity-linked instruments up to Rs 20,000. Further, the company is also mulling to raise Rs 25,000 crore through debt, which will aggregate to a total of Rs 45,000 crore.
“The equity and debt fundraising will enable the company to make investments towards significant expansion of 4G coverage, 5G network rollout, and capacity expansion. These investments will enable the company to improve its competitive positioning and offer an even better customer experience. The proposed fundraise follows a marked improvement in operating metrics. The company has managed to grow its 4G subscriber base and ARPUs consecutively for the last 10 quarters. Further, the company remains focused on providing competitive data and voice experience at all locations where it is present,” said Vodafone Idea in an exchange filing on February 27.
In the last five days, the stock of the company has fallen 7% but has risen 56.7% in the last six months. However, in the long term, the stock showed a mixed trend. It has risen 107% in the last year, while has fallen 22% in the last five years.
To give a comparison, the benchmark 50-stock index Nifty 50 has risen 0.28% in the last five days and 14% in the last six months. The index has risen 28% in the past year and 103% in the last five years.
