Vodafone Idea fall 6% after board approves fund-raising of Rs 4500 cr, Nomura reduce rating

Trading (Vodafone Idea)
Trading (Image: Canva)

Yesterday the board of Vodafone Idea approved a fund raise of Rs 4500 crore by issuing shares to its promoter group on a preferential basis in a meeting. This issue will be done at a price of Rs 13.30 per share.

Apart from this, the board of Vodafone Idea also approved the decision to conduct private placement or placement of qualified institutions in one or more tranches to raise an additional Rs 10,000 crore.

Today Vodafone Idea’s share price is down 6.2% even after approving fund raising plan. Financial services and research firm Nomura said that this fund would not be enough to raise Vodafone Idea and due to this they gave a reduce rating on the company’s stock.

Apart from this, Vodafone Idea has continuously lost its user and market share for the last one and a half years, and the ARPU of the company is also not showing improvement.

Apart from all this, due to negative sentiments in the overall market, the share price of the company is also showing impact.

Vodafone Idea share: Financials

52 Week High16.80
52 Week Low4.55
Sector PE41.90
Face Value10
Mkt Cap (Rs. Cr.)27,442
Book Value Per Share13.32

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Net Profit 2021 (Rs. Cr.)-44,464
Debt to equity (2021)-4.12
Revenue 2021 (Rs. Cr.)41,952
Dividend/Share (INR)0.00
Promoters holding72.05%

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This article is only for education purpose and the author has his own views and research, so if you invest in these stocks then do it at your own risk and do the research yourself before investing.

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