Vodafone Idea Stock Price: To bail out the country's third largest telecom company Vodafone Idea, which is facing financial crisis, and launch 5G service, the company's board has raised Rs 45,000 crore through equity and debt. Approval has been given to collect. Despite this, investors find this step of the board inadequate. In the very next trading session after the board's decision, there was a sharp decline in the stock of Vodafone Idea and the share slipped by 13 percent.
Stock fell 14 percent
In the morning the stock opened at Rs 15.50 but after that there was a selloff in the stock and the stock slipped by about 14 percent in the day's trade and at the time of market closing the stock closed at the level of Rs 13.65 with a fall of 13.88 percent. .
Brokerage house downgraded
The decline in the stock is also being seen because many brokerage houses have downgraded the stock and advised investors to sell it. Foreign brokerage house has advised to sell the shares of Vodafone Idea and reduced the target price of the stock to Rs 5. Another brokerage house Nomura has also advised to sell the stock with a target of Rs 7.
The fund of Rs 45000 crore is insufficient!
The stock of Vodafone Idea is also falling because the said fund raising of Rs 45,000 crore is being said to be insufficient for the company because the company has an outstanding gross debt of Rs 2.14 lakh crore. The company said in its regulatory filing on Tuesday, February 27, 2024, that the funds raised will be spent on expanding 4G coverage and the rollout of 5G service. Reliance Jio to Airtel have already launched 5G service but due to lack of funds, Vodafone Idea has not been able to do so yet.
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