Vodafone Idea Share News: The company’s shares increased by 1.5 percent and crossed Rs 13.
Debt-ridden company Vodafone Idea says that it will roll out 5G with the FPO money. The company said that in the last 5 years the promoters have invested Rs 23,000 crore. The company has 5G spectrum in 17 circles. 5G rollout will increase the company’s income. ARPU has improved in the last few quarters.
Vodafone Idea 5G roll out plan
Giving detailed information, the company said that there is a plan to start 5G service in 40 percent circles in 24-30 months. We have upgrade opportunities for subscribers. Will continue to invest for network capacity growth. However, the stock has fallen 20 percent in three months. It has increased by 115 percent in one year.
Now what next? Brokerage company Kotak Institutional Equities estimates that Vodafone Idea’s recent fund raising plan is a good sign. However, they do not seem to be getting any benefit from it in terms of market share.
The brokerage house says the Indian government’s stake could exceed 80 percent, which would limit potential profits for small investors. The brokerage has removed its coverage on the stock.
Vi has announced a follow-on public offer (FPO) of Rs 18,000 crore at Rs 10-11 per share.
70 percent of the FPO proceeds will be spent on increasing 4G coverage (26k sites), capacity (40.8k sites) and 5G rollout (22k sites). Kotak estimates that improvement in 4G coverage will curb market share loss in the short term.
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