Vodafone Idea shares in focus ahead of April 6 meet on Rs 2,075 crore preferential issue

Shares of Vodafone Idea Ltd are in focus on Thursday morning, as the telecom operator said its board would meet on Saturday, April 6, to consider issuance of equity or convertible securities on a preferential basis to promoters. Vodafone Idea said the preferential shares would be issued to one or more promoter group entities for a sum upto Rs 2,075 crore.

"It is hereby informed that the board meeting that is proposed to be held on Saturday, 6th April, 2024, is for considering issuance of equity / convertible securities on preferential basis to one or more Promoter Group entities for a sum upto Rs. 2,075 crore.

The announcement came days after the debt-ridden company said it received shareholder approval for raising funds of up to Rs 20,000 crore in an extraordinary general meeting (EGM).

The Rs 20,000 crore fundraising is expected to be utilised for expansion of 4G network and rolling out of 5G services. The fund raise is part of the company's programme of raising a total Rs 45,000 crore.

In January, India’s overall wireless subscriber base rose a healthy 22 lakh subscribers to 116 crore. Jio Financial saw robust subscriber gains while there was a muted addition to Bharti Airtel numbers, which were were offset by Vodafone's sustained subscriber decline.

For the month, Vodafone saw its its subscriber base falling 15 lakh, up from 14 lakh in December. Its total subscribers stood at 22.15 crore subscribers at the end of January.

"VIL lost market share in 20 out of 22 circles; it gained market share of 10bp m-m in Rajasthan circle and maintained its position in J&K. VIL’s overall market share declined by 20bp m-m to 19.1%, lagging significantly behind its peers. VIL’s market share has now declined by 160bp in FY24-

TD," Nomura India said on April 1 while suggesting a 'Reduce' rating on the stock.