Shares of Vodafone Idea (VIL) continued their northward movement for the third straight day, hitting 15-months high of Rs 13.45, up 7 per cent on the BSE on Friday ahead of the company's board meeting today to consider fund raising plan. The stock of the telecom services provider bounced back 19 per cent from its early morning low of Rs 11.31. It was trading at its highest level since June 10, 2019.
According to a Bloomberg report, Vodafone Idea is planning to raise about $1.5 billion as it seeks to "turn around its fortunes in the country’s fiercely competitive wireless market".
"Vodafone Idea Ltd. is discussing a funding plan that could include a share sale... It is working with advisers including New York-based investment bank PJT Partners Inc. as it seeks potential strategic partners to buy stakes," the report said.
The telecom operator is working to identify potential investors in the US. It could also raise part of the funds through other methods such as an offering of equity-linked securities, the report said quoting sources.
Meanwhile, VIL on Thursday, after market hours, said that the Company constantly evaluates various opportunities for enhancing the stakeholders’ value as part of corporate strategy. As and when such proposals are considered by the board of directors of the Company warranting disclosures, the Company shall comply with the disclosure obligations under the SEBI.
"Currently, there is no proposal as reported by the media that is being considered at the Board," it clarified on reports of investment by Verizon, Amazon. READ HERE
With today's gains, the share price of VIL has zoomed 75 per cent in three days, from Rs 7.69 touched in intra-day trade on September 1. On Tuesday, VIL's stock had ended 13 per cent lower at Rs 8.89 after the Supreme Court allowed 10 years-time frame for staggered payments towards settlement of Adjusted Gross Revenues (AGR) dues.
After market hours on Tuesday, VIL informed the stock exchanges that "a meeting of the board of directors of the Company is scheduled to be held on September 4, 2020 to consider and evaluate any and all proposals for raising of funds in one or more tranches by way of a public issue, preferential allotment, private placement, including a qualified institutions placement or through any other permissible mode and/or combination thereof as may be considered appropriate, by way of issue of equity shares or by way of issue of any instruments or securities".
At 09:48 am, VIL was trading 5 per cent higher at Rs 13.23 on the BSE, as against 1.2 per cent decline in the S&P BSE Sensex. A combined around 700 million equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report.