Shares of Vodafone Idea Ltd., the telecom service provider, are up another 10% during Monday's trading session after having gained 21% last Friday.
However, the street is still awaiting clarity on the company's fund raising plans on which the management had shed light during the September quarter earnings call.
The management had mentioned that the company's promoters will infuse a sum of up to ₹2,000 crore by the end of the December quarter, which ended on Sunday.
"In the last quarter, we had gotten a letter from the promoters that they will support us to the extent of ₹2,000 crore. Till date they have not actually contributed anything. We had gotten some bank funding to tide over the short term mismatch that we had in the last quarter. The promoters’ commitment is there. They have said that they will support as and when required. And we expect that this promoters’ contribution should also come alongside the tie up with the external investor," CEO Akshaya Moondra had said during the earnings call.
"Most likely this will conclude in this quarter. That's our expectation," he had added.
With regards to its 5G rollout, the company's management said that it is in talks with vendors for the same, adding that a significant expansion of the 4G coverage and the 5G rollout will happen after the funding is tied up.
At the India Mobile Congress this year, Aditya Birla Group Chairman Kumar Mangalam Birla said the company will make "significant investments" over the next few quarters for the 5G rollout. However, he did not specify a timeline for the rollout.
There is still no clarity on the 5G rollout from the company. At the same time, competitors like Reliance Jio and Bharti Airtel have nearly completed their respective Pan-India rollout of their services.
Vodafone Idea had lost 7.4 million subscribers during September, according to TRAI data.
Vodafone Idea's failure to meet its contractual payments significantly affected companies like Indus Towers, whose MD & CEO Prachur Sah wrote to the telecom regulator that the non-payment of dues had severely impacted the company's cash flow.
The letter, accessed by CNBC-TV18, also highlighted that due to Vodafone Idea's inability to make payments, Indus Towers couldn't declare dividends to its shareholders for the first time since its listing. As of September 30, 2023, Vodafone Idea owed ₹7,864.5 crore to Indus Towers.
First Published: Jan 1, 2024 10:05 AM IST
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