NEW DELHI: Despite announcing a fresh round of fund-raising plans, shares of beleaguered telecom operator Vodafone Idea fell sharply on Monday, with analysts recently expressing doubt if the capital infusion efforts would be enough to revive the firm.
On Friday, the company, which is under severe financial stress, said that it would receive fund infusion worth Rs 3,375 crore from the promoter Vodafone as part of the company’s proposed fund raising efforts worth Rs 14,200 crore.
Besides Vodafone, Aditya Birla Group plans to pump in up to Rs 1,125 crore, according to a regulatory filing on Friday, PTI reported.
Vodafone’s counter lost close to 4%, touching a low of Rs 9.95 as against the previous close of Rs 10.35 on the National Stock Exchange.
At an Extraordinary General Meeting scheduled March 26, the telecom operator will seek shareholders’ approval for raising up to Rs 14,500 crore as well as increase its authorised share capital to Rs 75,000 crore, reports said.
The board of Vodafone Idea Ltd (VIL) has already approved the fund raising plan, which includes Rs 4,500 crore coming in from Aditya Birla Group and Vodafone, while the remaining amount of Rs 10,000 crore would be raised by way of equity or debt instruments, reports said.
Global research firm Nomura maintains a ‘reduce’ rating on Vodafone Idea with a target at Rs 8 per share.
“The infusion from promoters at premium is a positive, but not enough for revival and after remitting funds to Indus, Vodafone Idea will likely be left with only about Rs 2,550 crore,” Nomura recently said.
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