The shares of the telecom company gained around 3 percent in today’s trading session after the company’s Promoters plans to raise 2,000 cr. In the duration of six months, the stock has given a return of more than 70 percent to its investors.
With a market capitalization of Rs. 56,711 cr, the shares of Vodafone Idea Ltd opened on a positive note in Tuesday’s trading session. The share opened at the Rs. 11.75 level and went to hit a high of Rs. 12.20 making a gain of around 3 percent. The share is currently trading at Rs. 12 apiece.
According to reports, Promoters of the company are planning to raise funds worth Rs. 2,000 cr. During the June-September quarter results, it stated that the company received a communication from a Promoter group entity that in the event of any fund requirement for meeting its impending payment it will provide direct or indirect financial support to the extent of Rs. 2,000 cr should close in the December quarter.
At the India Mobile Congress 2023 in New Delhi on Friday, Vodafone Idea Chairman Mr. Kumar Mangalam Birla said that the company will make significant investments in the upcoming quarters for the rollout of its 5G network.
Digging into the financials of the company, the revenue marginally increased from Rs. 10,655 cr during Q1 FY24 to Rs. 10,716 cr in Q2 FY24. In addition to this, the net loss magnified from Rs. 7,840 cr to Rs. 8,737.9 cr during the same period.
Coming on to the important financial ratios of the company, the return on equity has been zero for many years due to increasing liability in the business. Furthermore, the return on capital employed is also been negative for many financial years and currently has -4.93 percent RoCE.
According to the latest shareholding pattern, Promoters of the company have a 56.36 percent stake in the company, the Public or the retail investors have 12.2 percent of holdings, FIIs hold 2.46 percent shares and the remaining 34.98 percent of shares are with DIIs.
Headquartered in Mumbai and Gandhinagar Vodafone Idea or Vi is an Indian mobile network operator. It is an all-India integrated GSM operator offering 2G to 5G network and VoWiFi service. As of 30 June 2023, Vi has a subscriber base of 221.4 million, making it the third-largest mobile telecommunications network in India and the 11th-largest mobile telecommunications network in the world.
Written by Vaibhav Patil
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