Vodafone Idea Ltd Share Price – NSE  /  BSE

Telecomm-Service, Mid Cap

Vodafone Idea (Vi) announced the launch of new plans for its prepaid and post-paid consumers that will be effective from 04 July 2024.

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Vodafone Idea announced that an Extra Ordinary General Meeting (EGM) of the Company will be held on 10 July 2024 .

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The frontline indices traded in narrow range with minor gains in early afternoon trade. The Nifty traded above the 23,400 level after hitting the day’s low of 23,334.25 in early trade. Auto shares advanced for the second consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 86.99 points or 0.11% to 76,897.89. The Nifty 50 index rose 36.55 points or 0.16% to 23,435.45.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index added 0.88% and the S&P BSE Small-Cap index gained 1.04%.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hit an all-time high at 45,939.14 and 51,223.39 respectively.

The market breadth was strong. On the BSE, 2,277 shares rose and 1,483 shares fell. A total of 124 shares were unchanged.

Economy:

India's Wholesale Price Index (WPI)-based inflation rose to 2.61% in May 2024. WPI-based inflation in May was primarily driven by increases in the prices of food articles, the manufacture of food products, crude petroleum and natural gas, mineral oils, and other manufacturing sectors.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 4.87% to 12.83. The Nifty 27 June 2024 futures were trading at 23,440, at a premium of 4.55 points as compared with the spot at 23,435.45.

The Nifty option chain for the 27 June 2024 expiry showed maximum Call OI of 62.7 lakh contracts at the 24,000 strike price. Maximum Put OI of 79.3 lakh contracts were seen at 22,500 strike price.

Buzzing Index:

The Nifty Auto index gained 1.13% to 25,679.15. The index advanced 1.83% in two consecutive trading sessions.

Samvardhana Motherson International (up 3.34%), Bharat Forge (up 3.12%), Mahindra & Mahindra (up 2.58%), TVS Motor Company (up 1.17%), Eicher Motors (up 0.75%), Balkrishna Industries (up 0.69%), Exide Industries (up 0.37%), Tata Motors (up 0.34%), Ashok Leyland (up 0.33%) and Hero MotoCorp (up 0.24%) advanced.

On the other hand, Bosch (down 0.74%), Apollo Tyres (down 0.36%) and Tata Motors-DVR (down 0.26%) edged lower.

Stocks in Spotlight :

Vodafone Idea (VIL) advanced 1.12% after the company announced that its board has approved preferential allotment of around 166 crore fully paid up equity shares in one or more tranches for an aggregating consideration of upto Rs 2,458 crore on preferential basis.

Lemon Tree Hotels rallied 3.73% after the company announced the opening of its ninth property in Rajasthan, Udaipur with Keys Lite by Lemon Tree Hotels.

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The company will allot approximately 166 crore equity shares to its vendors, Nokia Solutions and Networks India Private (Nokia) and Ericsson India Private (Ericsson) at an issue price of Rs 14.80 per share, (including a premium of Rs 4.80 per share).

The company will allot upto 1,02,70,27,024 equity shares at an issue price of Rs 14.80 per share (including a premium of Rs 4.80 per equity share), aggregating to Rs 1,520 crore to Nokia. While the firm will allot upto 63,37,83,780 equity shares at an issue price of Rs. 14.80 per equity share (including a premium of Rs. 4.80 per equity share), aggregating to Rs 938 crore to Ericsson.

Nokia and Ericsson both have a long-term partnership with VIL, as key suppliers of network equipment, and this preferential allotment will enable VIL to clear part of their outstanding dues. It further bolsters VIL’s capex rollout for building a top quality 4G & 5G network to contribute towards India’s digital transformation.

This preferential allotment price is higher by 35% to the FPO price and comes with a lock in of 6 months. Nokia and Ericsson will participate for up to Rs 1,520 crore and Rs 938 crore respectively, subject to approval by VIL shareholders at the EGM to be held on 10 July 2024.

This comprehensive fund raise (equity and debt) will empower the company to work towards executing its well-defined strategy including expansion of its 4G coverage and launch of 5G services. This will enable VIL to participate in the large and significant opportunities offered by the Indian wireless sector.

The company, with a strong subscriber base of 212.6 million (March 31, 2024), 4G population coverage of over 1 billion Indians, competitive spectrum profile, extensive distribution reach and a well-established brand along with differentiated digital offerings is well positioned to effectively compete in the market.

Post this preferential issuance, the shareholding of Nokia and Ericsson in the company will be 1.5% and 0.9% respectively. The Promoter (ABG and Vodafone) shareholding will stand at 37.3% and shareholding of Government of India will stand at 23.2%, while the balance 37.1% will be public shareholding, stated by the company.

Akshaya Moondra, CEO, Vodafone Idea, said “VIL is all set to participate in the industry growth with right investments to expand its 4G coverage and offer 5G experience to its customers while remaining focused on its execution capabilities. As VIL embarks on its growth journey, support from key stakeholders is critical and the agreement with Nokia and Ericsson reaffirms these vendors as long-term partners of the company and sets the stage for the next phase of our growth.”

Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. It is amongst India's leading telecom service provider. The company provides pan India voice and data services across 2G, 3G and 4G platforms. The company holds large spectrum portfolio including mid band 5G spectrum in 17 circles and mmWave 5G spectrum in 16 circles.

The telecom service provider’s consolidated net loss widened to Rs 7,674.6 crore in Q4 FY24 as compared with Rs 6,418.9 crore in Q4 FY23. Revenue from operations increased marginally to Rs 10,606.8 crore in Q4 FY24 as against Rs 10,531.9 crore posted in Q4 FY23.

The scrip rose 0.31% to Rs 16.12 on the BSE.

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