Vodafone Idea shares climb 3% on block deal worth Rs 234 crore. Details here

Shares of Vodafone Idea Ltd were trading higher in Wednesday's trade following a block deal. As per BSE data, 19,04,25,000 shares, valued at Rs 233.65 crore, changed hands today. The official buyers and sellers of the block deals are not yet known.

Voda Idea's stock rose 2.67 per cent to hit a day high of Rs 12.71 against its previous close of Rs 12.38. Turnover on the counter came at Rs 272.73 crore, commanding a market capitalisation (m-cap) of Rs 83,702.67 crore.

Nuvama Institutional Equities said the telecom operator's management appeared upbeat about the growth prospects following the recent successful follow-on public offer (FPO).

The domestic brokerage mentioned that Voda Idea needs three events to play out to survive – capital infusion, liabilities waiver and tariff hikes. With the recent capital raise, the telco has achieved one and enabled another. Nuvama also said Voda Idea expects the upgradation capex to be similar to what its peers have done over the last three years.

"We believe VIL is on its way to a 'going-concern' now – though still not completely out of woods. We maintain estimates and reiterate 'HOLD', with an unchanged target price of Rs 14, valuing it at 11 times FY26 EV/Ebitda," Nuvama stated.

The telco is planning to roll out its 5G services in select areas over the next six to nine months. Voda Idea CEO Akshaya Moondra said that the 5G rollout could cover 40 per cent of the company's overall revenue base in the next 24-30 months.

Vodafone Idea was formed in 2018 when Vodafone Group merged its India business with Idea Cellular. The company, in which Vodafone owns more than 25 per cent, is the country's third-biggest operator.

As of April 23, 2024, promoters held a 36.87 per cent stake in the company.