Vodafone Idea: Vodafone Idea stock became high due to Kumar Mangalam Birla's statement, stock rose 13%

Vodafone Idea: Vodafone Idea stock became high due to Kumar Mangalam Birla's statement, stock rose 13%

Vodafone Idea Share Price: The stock price of Vodafone Idea has seen a strong rise in the trading session of Friday 23 February 2024. In today's trade, the stock rose by 13 percent to Rs 18.40, which is the highest level in the last one year. At market close, Vodafone Idea stock closed at Rs 17.55 with a jump of 7.67 per cent. But the rise in the stock has come after the statement of Aditya Birla Group Chairman Kumar Mangalam Birla in which he said that he is fully committed to the company. 

Due to this statement the stock rose 

After the launch of paints business Birla Opus in Panipat, Kumar Mangalam Birla was asked a question about Vodafone Idea. Answering this question, he said, we are fully committed to Vodafone Idea. He said that the company is looking for external investors. Obviously, through this statement, Kumar Mangalam Birla has put an end to the speculations that Aditya Birla Group may come out of the telecom business. Due to this statement of Kumar Mangalam Birla, there has been a strong rise in the stock of Vodafone Idea. 

Board meeting on 27th February 

By the way, Vodafone Idea's board meeting is going to be held on 27 February 2024 in which the company will consider raising capital. The company has given this information in the regulatory filing with the stock exchanges. The company said it will raise funds through rights issue, public offer, private placement including preferential allotment or qualified institutional placement. Kumar Mangalam Birla said that the company is moving forward in the direction of raising funds but it is not possible to give a timeline. 

Company in huge loss 

UK's Vodafone Group PLC has 18.1 percent stake in Vodafone Idea, the country's third largest telecom company, while Aditya Birla Group has 32.3 percent stake. Vodafone Idea is facing huge financial crisis. In the third quarter of the financial year 2023-24, the company has suffered a loss of Rs 6985.9 crore while the revenue was Rs 10,673.1 crore. Vodafone Idea is continuously losing customers. Reliance Jio and Airtel are benefiting from this. The company's consumer base was 228.8 million in the quarter of 2022-23, which has decreased to 215.2 million in the third quarter of this financial year.   

Debt of Rs 2.14 lakh crore in the company 

Gross debt on Vodafone Idea till the third quarter has been Rs 214960 crore, which includes deferred spectrum payment of Rs 138240 crore under spectrum. AGR liability is Rs 69020 crore, outstanding of public sector banks and financial institutions is Rs 6050 crore. The net debt of the company is Rs 214640 crore. 

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