Vodafone Idea shares jump 10% after company announces revival plan: Report 

Shares of Vodafone Idea Limited surged as much as 10.12 per cent to hit an intraday high of Rs 8.48 on Wednesday after a media report suggested that the company plans to infuse Rs 14,000 crore equity in the company as part of its business revival plan.

According to the report, Aditya Birla Group and Vodafone Group plan to invest Rs 2,000 crore as fresh equity. A sum of Rs 5,000 crore has been already invested as fresh equity after the government announced a revival plan for telecom industry in September 2021. As per the report, the company will raise an additional Rs 7,000 crore in the form of convertible structures from external investors, or as direct equity.

Vodafone Idea is also looking to avail additional borrowings amounting to Rs 25,000 crore from domestic lenders as loans against the committed fresh equities.

According to the report, the company may face a cash crunch of Rs 25,000 crore in the fiscal year 2025-2026. It would require a hike in the current tariffs to make up for the shortfall. The company lost 1.3 million 4G users in February this year, its record decline in 21 months. 

As of 10:15 am, Vodafone Idea traded 5.7 per cent higher at Rs 8.15, outperforming the Sensex which was down 0.13 per cent.