Vodafone Idea Ltd (VIL) has received board approval for a fundraising initiative, intending to raise ₹2,458 crore by issuing 166 crore new shares at ₹16.22 per share. According to an exchange filing, the company plans to allocate 102.7 crore shares worth ₹1,520 crore to Nokia Solutions and Networks India Pvt Ltd, and 63.37 crore shares worth ₹938 crore to Ericsson India Private Limited.

Additionally, two months prior, in April 2024, Vodafone Idea successfully raised ₹18,000 crore through a follow-on public offer (FPO). The FPO had a price range set between ₹10 and ₹11 per share, with each lot consisting of 1,298 shares available for bidding.

AliCade, a consortium of lenders led by the State Bank of India (SBI), has granted preliminary approval for a loan of ₹14,000 crore to Vodafone Idea (VI). This loan is intended to support VI’s efforts to revive its business, which includes plans for launching 5G services. The information has been sourced by Moneycontrol from undisclosed individuals familiar with the matter.

However, there has been no official announcement made by Vodafone Group Plc, Birla Group’s joint venture Punjab National Bank (PNB), Bank of Baroda, Union Bank, and other private and public sector banks, who have reportedly received informal commitments from various borrowers

VI Stock Soars 103% in a Year: Vodafone Idea’s stock performance highlights its recent fluctuations and challenges amidst financial difficulties. The stock closed today at Rs 16.08, marking a decrease of 2.13%. Over the past 5 days, it has gained 4.42%, and over the last month, it has risen by 21.36%. Looking back, the shares have shown a positive return of 15.27% in the past 6 months and a significant 103.54% over the last year, despite facing a 5.41% decline year-to-date.

The company is grappling with substantial financial issues, burdened by a debt of Rs 210,000 crore. To remain competitive against rivals like Reliance Jio and Bharti Airtel, Vodafone Idea needs to enhance its services and infrastructure significantly.

In the fourth quarter of the financial year 2024 (January-March), Vodafone Idea secured a loan of ₹7,674 crore. The company reported a consolidated net worth of Rs 6,418 crore for the preceding quarter and registered a 19.56% annual increase in profit for the current fourth quarter.

Revenue from operations for Vodafone Idea in the fourth quarter totaled ₹10,606 crore, showing a slight annual increase of 0.71%. These figures underscore the company’s ongoing efforts to navigate its financial challenges amidst competitive pressures in the telecom sector.

In FY24, Vodafone Idea (VI) experienced a growth in equity by 6.61%, reaching Rs 31,238 crore compared to Rs 29,301 crore in FY23. The company’s revenue from operations for FY24 amounted to ₹42,651 crore, showing a modest increase of 1.12% from ₹42,177 crore in FY23.

VI reported a total of 12.63 crore 4G subscribers by the end of the fourth quarter, marking consistent growth over the past 11 quarters. The total customer base now stands at 21.26 crore. Additionally, total data traffic increased by 4.3% annually in the fourth quarter.

These figures reflect VI’s efforts to strengthen its financial position and expand its subscriber base amidst competitive pressures in the telecom industry.