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Vodafone Idea falls 4%; Rs 18,000-crore FPO anchor book to open today

Vodafone Idea shares have plunged 25.19 per cent year-to-date (YTD), but have surged 7 per cent in the past 6 months

vodafone idea vi

vodafone idea vi

SI Reporter New Delhi

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Shares of Vodafone Idea dropped as much as 3.95 per cent to hit an intraday low of Rs 12.64 per share. The drop comes in reaction to the follow-on public offering (FPO) anchor book, which will open today.

Vodafone Idea shares have plunged 25.19 per cent year-to-date (YTD), but have surged 7 per cent in the past 6 months.

Cash-strapped Vodafone Idea, from its Rs 18,000 crore FPO, aims to boost existing 4G sites, and set up new 4G sites and 5G sites. Vodafone Idea will also use the funds to pay off certain deferred payments for spectrum to the DoT and the GST thereon.
 

Vodafone Idea will also be rolling out 5G services after its FPO funding, said Akshaya Moondra, chief executive officer on Monday, April 15, during FPO press conference. He further said that the telco is equipped with a 5G-ready radio architecture.

In terms of key performance indicators, Vodafone Idea is struggling to keep up with Bharti Airtel and Reliance Jio. The company’s subscriber market share is merely 18.8 per cent as compared to 36 per cent and 45.5 per cent for Airtel and Jio, respectively.

Vodafone Idea is the 3rd largest telecommunications service provider in India based on subscriber base. The company, through its pan India network, offers voice, data, enterprise and other value-added services, including short messaging services and digital services across 2G, 3G and 4G technologies. 

Vodafone Idea also offers connectivity services to enterprise customers. The company holds active licences for national long distance (NLD), international long distance (ILD) and internet service provider (ISP), and registration for infrastructure provider (IP-1) services

As of 10:11 am, shares of Vodafone Idea were trading 2.89 per cent lower at Rs 12.78 apiece.

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First Published: Apr 16 2024 | 11:03 AM IST

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