Shareholders of Vodafone Idea approved to raise funds: Company will raise ₹20 thousand crores, focus on improving 5G rollout and 4G service.
Shareholders of telecom company Vodafone Idea Limited (VIL) have approved raising Rs 20 thousand crore through equity and equity-linked securities. Vodafone Idea gave information about this in its stock exchange filing.
After this news, Vodafone Idea shares saw a rise of 1.12%. After trading throughout the day, the company’s shares closed at Rs 13.60. Vodafone Idea shares have fallen 20% so far this year (YTD).
5G rollout and 4G service will be improved
According to media reports, Vodafone Idea will use this fund to rollout 5G and improve 4G service. Along with this, this fundraising will also enable the company to improve its competitive positioning and provide better customer experience.
On February 27, the board had given approval to raise funds.
Earlier on February 27, the company’s board had given approval to raise Rs 20 thousand crores. Vodafone Idea wants to raise total Rs 45 thousand crores. This Rs 20 thousand crore is also a part of this.
Vodafone Idea is facing financial problems
Vodafone Idea is facing financial problems, which has a debt of Rs 210000 crore. Vodafone Idea wants to improve its service and basic infrastructure to compete with its competitors (Jio and Bharti Airtel). The company is currently far behind big competitors like Reliance Jio and Bharti Airtel.
Vodafone Idea’s combined net loss narrows to ₹6,986 crore in December quarter
Vodafone Idea’s combined net loss has declined to Rs 6,986 crore in the quarter ended December, from Rs 7,990 crore last year and Rs 8,738 crore in the previous quarter. Along with this, the company has also shown some positive signs.
The 4G customer base has increased from 121.6 million to 125.6 million in the last one year. The company has maintained growth in its 4G customer base and average revenue per user (ARPU) for ten consecutive quarters.
