Vodafone Idea jumps 10% but cuts some gains due to lack of fundraising details

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MUMBAI: Shares of Vodafone Idea jumped 13% on Monday, but gave up some gains as the market was disappointed after the company did not give details on its fundraising plans. The company announced today that it will rebrand Vodafone Idea into an integrated brand called VI, two years after the completion of the merger of Vodafone India Ltd and Idea Cellular Ltd.

Stocks peaked for the day 13.21 before the announcement on the hope that the company will provide some details about the fundraising. They reduced the gains and at 2:30 p.m. they traded 3.4% higher at 12.42, while the benchmark, Sensex was down 0.3% to 38,256.

Company CEO Ravindar Takkar said that “the unified brand has a strong and reliable network, and built to meet the digital needs of customers.” As of Friday, the council had approved fundraising plans until 25,000 crore through a combination of equity and debt issuance. The announcement was made after market hours.

Vodafone should approximately 58,254 crore to the government, which he paid 3500 crore to date. The telecommunications company reduced its stake in Indus Towers to 4000 crore. However, he will have to make a prepayment of 2,400 crore to the merged entity Indus Tower-Bharti Infratel.

The fundraising proposals will be examined at the annual general meeting scheduled for September 30, 2020. The British group Vodafone has maintained its position according to which it will not invest new shares.

The telecommunications company reported a consolidated net loss of 25,460 crore in Q1 FY21, higher than the net loss of 4,873.90 crore at Q1 FY20. Gross income fell 5.4% to 10,659.30 crore in the first quarter.

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