Government of India-Backed Telecom Stock Under Rs 10; Board to Mull Rs 2,000 Crore Fund Raise via Preferential Issue
The company's majority of stake i.e., 23.15 per cent, is owned by the Government of India (Department of Investment and Public Asset Management).
On Thursday, one of the Top Gainers on BSE & NSE, shares of this telecom service provider, plunged 4.28 per cent to Rs 8.05 per share from its previous closing of Rs 8.41 per share. The stock’s 52-week high is Rs 19.15 and its 52-week low is Rs 6.60 per share.
The trending telecom stock is Vodafone Idea Ltd
The Board of Directors of the Company is scheduled to be held on Monday, 9 December 2024, inter-alia, to consider a proposal for raising funds not exceeding Rs 2,000 crore, by way of issuance of equity shares and/or convertible securities on a preferential basis to one or more entities belonging to Vodafone Group (one of the Promoters of the Company).
Earlier, the Union Cabinet's decision to waive bank guarantees (BG) for telecom operators on spectrum acquired before 2022 offers substantial relief to the industry. This move directly benefits companies like Vodafone Idea, which owed over Rs 24,700 crore in BGs. By eliminating this financial burden, the government aims to bolster the telecom sector's stability and encourage investment. Vodafone Idea, grappling with significant financial challenges, has been lobbying for the BG waiver. The company's recent failure to meet BG payment obligations underscores the urgency of this relief. With this decision, the government aims to create a conducive environment for the telecom industry's growth and development.
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About Vodafone Idea Ltd
Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is amongst India’s leading telecom service providers. The company provides pan India Voice and Data services across 2G, 3G and 4G platforms. The company holds a large spectrum portfolio including mid-band 5G spectrum in 17 circles and mm-Wave 5G spectrum in 16 circles. To support the growing demand for data and voice, the Company is committed to delivering delightful customer experiences and contributing towards creating a truly ‘Digital India’ by enabling millions of citizens to connect and build a better tomorrow.
The Company is developing infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future-ready with innovative offerings, conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence. The Company’s equity shares are listed on the National Stock Exchange (NSE) and the BSE in India.
The company has a market capitalization of over Rs 55,000 crore. The company's majority of stake i.e., 23.15 per cent, is owned by the Government of India (Department of Investment and Public Asset Management).
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Disclaimer: The article is for informational purposes only and not investment advice.