Updated February 27th, 2024 at 12:37 IST

Vodafone Idea shares slide as board meets to discuss fundraising plans

In the early trade on February 27, the telecom operator's stock was trading at Rs 16.3, marking a notable decline from the previous session's levels.

Reported by: Business Desk
Vodafone Idea share price | Image:Unsplash, Vodafone Idea
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Vodafone Idea board meeting: Shares of Vodafone Idea witnessed a downturn of 3.56 per cent to touch an intraday low of Rs 16.25 apiece on the National Stock Exchange (NSE) today, signaling investor caution ahead of the telecom giant's board meeting slated to discuss a significant fundraising proposal.

In the early trade on February 27, the telecom operator's stock was trading at Rs 16.3, marking a notable decline from the previous session's levels.

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Vodafone Idea disclosed that its board of directors is set to convene on February 27 to deliberate on various proposals aimed at raising funds across one or multiple tranches. The fundraising avenues under consideration include a rights issue, further public offering, private placement of shares, preferential allotment, qualified institution placement, or any other permissible mode, the financially-strained company stated.

According to media reports, no listed company within the Aditya Birla group is expected to partake in the fundraising initiative, with the promoters slated to infuse capital into the company. This move, as reported by CNBC-TV18, is anticipated to result in the dilution of stakeholding for existing shareholders, including the Centre, Vodafone Group, and Aditya Birla Group.

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While the announcement of the fundraising plans initially buoyed investor sentiment, with the telecom company's shares witnessing a 4 per cent surge, the momentum was short-lived as the stock closed 4 per cent lower at Rs 16.85 on the NSE on February 26.

In its financial performance for the third quarter of the fiscal year 2023-24, Vodafone Idea reported a net loss of Rs 6,985.9 crore, reflecting a decline of 12.56 per cent compared to the corresponding period of the previous year. However, the company's revenue witnessed a marginal uptick, reaching Rs 10,673.1 crore, indicating a 0.49 per cent increase from the year-ago period.

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Published February 27th, 2024 at 12:37 IST