Vodafone Idea stock price jumps 4% after reports of funding offer
The stock price of Vodafone Idea shot up by more than 4 percent after media reports stated that the company is in talks with several groups for raising funding. According to a Bloomberg report, Oaktree Capital and Varde Partners are said to have offered Vodafone Idea at least $2 billion in funding.
The stock price of Vodafone Idea shot up by more than 4 percent after media reports stated that the company is in talks with several groups for fundraising.
According to a Bloomberg report, Oaktree Capital and Varde Partners are said to have offered Vodafone Idea at least $2 billion in funding.
Reacting to the news report, the shares of Vodafone Idea jumped as much as 4.23 percent to an intraday high of Rs 9.59 apiece on the BSE.
Vodafone Idea’s net debt stands at Rs 1,14510 crore.
The Board of Directors of the debt-laden telecom operator, at its meeting held on September 04, 2020, had approved the fund-raising plan of up to $ 2 billion or approximately Rs 25,000 crore.
In its post-earnings call with analysts, the company’s management had said that they were in discussions with several interested parties to raise funds through the debt and equity routes.
The interest was good and the ongoing discussions were progressing well, the company had said while being optimistic to conclude the fund-raise in two to three months.
In the quarter ended September 2020, Vodafone Idea's net loss narrowed to Rs 7,218.2 crore from Rs 50,897.9 crore in the same quarter of the previous fiscal. The average revenue per user (ARPU) increased to Rs 119 from Rs 107 in Q2FY20 and Rs 114 in Q1FY21.
Analysts believe Vodafone Idea needs Average Revenue Per User (ARPU) hike of more than 50 percent at the current EBITDA run rate in FY23E to meet the sharp jump in funding requirements.
At 1:15 pm, the shares of Vodafone Idea were trading 2.28 percent higher at Rs 9.41 apiece on the BSE as against a 0.14 percent loss in the benchmark Sensex.
(Edited by : Abhishek Jha)
First Published: Nov 19, 2020 1:38 PM IST
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