Today, shares of the telecom service provider Vodafone Idea in the spotlight. Shares of the company have dropped by 13%.
The company’s shares had fallen to an intraday low today of Rs 13.83. This decline in share prices is a major reason.
The board of directors of Vodafone Idea, a telecom service provider, approved on Tuesday raising up to Rs 20,000 crore through equity and equity-related instruments.
This will include the promoters of the company. Vodafone Idea announced that they have a plan to raise Rs 45,000 by combining equity and debt.
What Is The Detail?
The business is facing a severe financial problem and is fighting to survive.
The company has a massive debt of Rs 2.1 lakh crore, and it is also experiencing quarterly losses due to a continual decline in subscribers.
In a press release, the telecom company announced that its board has decided to invest in equity or equity-linked instruments.
The proposal is that up to Rs 20,000 crores through a mixture of equity and equity-related instruments. The management was also authorized to hire bankers and consultants for this purpose.
The shareholders of the company will approve this proposal at their meeting on April 2, 2019.
The company expects to finish the equity-raising process in the next quarter.
The equity-raising process will include participation by the promoters. After raising equity funds, the company will work actively with its lenders to secure debt financing.
The company intends to raise approximately Rs 45,000 crore using a combination of equity and debt.
Vodafone Idea declared that its bank debt is less than Rs 4,500 crore.
The statement states that “after raising equity and loan funds, the company can invest in 4G coverage, network expansion, and capacity expansion.”
The company can enhance its competitiveness by offering a better experience to customers.
Vodafone Idea stated that despite limited investments, performance showed continuous improvement.
The company believes that it can compete effectively in the market with fundraising and positive growth in operations.
The government stake in the company increased to 33,1% after last year converting interest on statutory revenue into stake.
About Vodafone Idea Ltd
Vodafone Idea Limited was formed as a joint venture between Aditya Birla Group, and Vodafone Group. The company is India’s biggest telecom service provider.
In India, the company offers voice and data services on a 2G/3G/4G platform. The company’s large spectrum portfolio will support the growing data and voice demand.
It is committed to providing delightful customer experiences, and to creating a truly “Digital India” by enabling millions to connect and create a better future.
The Company is developing infrastructure for newer and more intelligent technologies.
The company is listed on the Bombay Stock Exchange and National Stock Exchange in India.
Fundamental Analysis of Vodafone Idea Ltd
| Market Cap | ₹ 66,364 Cr. |
| Current Price | ₹ 13.6 |
| 52-wk High | ₹ 18.4 |
| 52-wk Low | ₹ 5.70 |
| Stock P/E | — |
| Book Value | ₹ -18.7 |
| Dividend | 0.00 % |
| ROCE | -3.82 % |
| ROE | — |
| Face Value | ₹ 10.0 |
| P/B Value | — |
| OPM | 39.9 % |
| EPS | ₹ -6.16 |
| Debt | ₹ 2,40,651 Cr. |
| Debt to Equity | — |
| Year | 1st Target | 2nd Target |
| 2024 | ₹ 15 | ₹ 19 |
| 2025 | ₹ 21 | ₹ 26 |
| 2026 | ₹ 27 | ₹ 29 |
| 2027 | ₹ 31 | ₹ 34 |
| 2028 | ₹ 45 | ₹ 65 |
| 2029 | ₹ 70 | ₹ 86 |
| 2030 | ₹ 100 | ₹ 154 |
| Promoters Holding | |
| Dec 2022 | 74.99% |
| Mar 2023 | 50.36% |
| June 2023 | 50.36% |
| Sept 2023 | 50.36% |
| Dec 2023 | 50.36% |
| FII Holding | |
| Dec 2022 | 3.59% |
| Mar 2023 | 2.28% |
| June 2023 | 2.29% |
| Sept 2023 | 2.46% |
| Dec 2023 | 2.27% |
| DII Holding | |
| Dec 2022 | 1.21% |
| Mar 2023 | 0.54% |
| June 2023 | 0.73% |
| Sept 2023 | 1.80% |
| Dec 2023 | 3.05% |
| Govt. Holding | |
| Dec 2022 | 0.06% |
| Mar 2023 | 33.18% |
| June 2023 | 33.18% |
| Sept 2023 | 33.18% |
| Dec 2023 | 33.18% |
| Public Holding | |
| Dec 2022 | 20.14% |
| Mar 2023 | 13.64 |
| June 2023 | 13.44% |
| Sept 2023 | 12.19% |
| Dec 2023 | 11.14% |
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 37092 Cr |
| 2020 | ₹ 44958 Cr |
| 2021 | ₹ 41952 Cr |
| 2022 | ₹ 38516 Cr |
| 2023 | ₹ 42577 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ -14,604 Cr |
| 2020 | ₹ -73,878 Cr |
| 2021 | ₹ -44,233 Cr |
| 2022 | ₹ -28,245 Cr |
| 2023 | ₹ -29,983 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 1.82 |
| 2020 | 16.11 |
| 2021 | -4.12 |
| 2022 | -3.08 |
| 2023 | -0.18 |
Last 10 Years’ Profit Growth:
| 10 Years: | — |
| 5 Years: | — |
| 3 Years: | 10% |
| Current Year: | -4% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | — |
| 5 Years: | — |
| 3 Years: | — |
| Last Year: | — |
Sales Growth Over 10 Years:
| 10 Years: | 7% |
| 5 Years: | 8% |
| 3 Years: | -2% |
| Current Year: | 2% |
Conclusion
This article is a complete guide about Vodafone Idea Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
If you are new to our website and want to get all the latest updates related to the stock market, join us on Telegram Group.
If you have any further queries, please comment below. We will be happy to answer all your questions.
If you like this information, share the article with as many people as possible.
Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We are here to provide timely updates about the stock market and financial products to help you make better investment choices. Do your own research before any investment.
