NEW DELHI, Feb 23 (IANS) – Vodafone Idea shares saw a significant surge of over 11% on Friday following the company’s announcement of a board meeting to discuss fundraising. The shares were trading at Rs 18.11, marking an increase of 11.24%.
Vodafone Idea is in need of a substantial fund-raise to bolster its capex and prevent further subscriber loss. The company reported a loss of 1.4 million subscribers month-on-month in December, indicating an escalation from the 1.1 million loss in November 2023, according to a report by Emkay Global Financial Services.
The telecom giant disclosed that its board of directors is set to convene on February 27 to deliberate and sanction the proposal related to fundraising. The meeting is meant to assess all proposals for raising funds in one or more tranches through various methods such as rights issues, public offerings, private placements, or qualified institutions placements, as stated by Vodafone Idea.
The company’s statement regarding the board meeting read, “The board of directors meeting is to consider and evaluate any and all proposals for raising of funds in one or more tranches by way of a rights issue, further public offer, private placement including preferential allotment, qualified institutions placement or through any other permissible mode and/or combination thereof as may be considered appropriate, by way of issue of equity shares or by way of issue of any instruments or securities including securities convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, and/or non-convertible debentures including non-convertible debentures along with warrants, which may or may not be listed.”
With the anticipated fundraising initiative on the horizon, Vodafone Idea aims to mitigate its financial challenges and stabilize its operations in the telecom sector.
–IANS
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