Vodafone Idea Share Price Plunges 4% Amid Disclosure of Meeting with Institutional Investors

Vodafone Idea Shares Decline 3.7% Amid Broader Market Losses

On Thursday, March 12, Vodafone Idea shares dropped by approximately 3.7% to a day's low of ₹9.35 on the BSE, following sharp losses in the Nifty 50 index.

The telecom company has announced plans to meet with institutional investors in Singapore on March 16 and in Hong Kong on March 17. While the company has not disclosed the details of these meetings, there are indications that it may explore raising new funds to support its ₹45,000-crore capital expenditure plan under its Vi 2.0 strategy.

Under this plan, Vodafone Idea aims to achieve double-digit revenue growth, a three-fold increase in operating profit, and sustained subscriber additions over the next three years. The company is seeking to raise ₹25,000 crore in bank funding and ₹10,000 crore in non-funded facilities to support the capex plan.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

As of December 31, Vodafone Idea owed approximately ₹1,126 crore to banks. The company raised ₹3,300 crore through a subsidiary via non-convertible debentures during the December quarter of the current financial year.

Vodafone Idea share price trend shows a 31% increase over the last six months, compared to a 6% fall in the Sensex. However, the stock has lost over 8% in March so far and 5% in February. The stock hit a 52-week high of ₹12.80 on December 31 and a 52-week low of ₹6.12 on August 14 last year.