look news india
Vodafone Idea Limited is burdened with debt. Today the company's shares have fallen by 10 percent. Meanwhile, the board of Vodafone Idea took an important decision regarding the fund yesterday. The board has approved raising equity up to Rs 20,000 crore from promoters and other investors by June.
Today the stock fell 9.95 percent to Rs 14.29 on BSE. It fell 9.77 percent to Rs 14.30 on NSE. Shares of the company touched the lower circuit limit on BSE and NSE.
The board took an important decision
On Tuesday, Vodafone Idea's board had approved raising Rs 20,000 crore in equity from investors. The company wants to raise funds to delay the 5G rollout and strengthen 4G services. Let us tell you that Vodafone Idea is drowned in debt. The government has more than 33 percent stake in the equity of the company.
The company plans to raise Rs 45,000 crore through equity and debt, which is expected to take on the services offered by rivals Jio and Bharti Airtel.
When the company gets this funding, it will be able to improve its competitive position in the Indian telecom market. The company's rivals are Reliance Jio and Bharti Airtel.
Vodafone Idea is fighting a desperate battle for survival. The company has a debt of Rs 2.1 lakh crore. The company has said in its quarterly report that it is facing losses month after month.