Vodafone Idea share price extends gains on fundraising buzz; Telecom stock jumps 15% in five sessions
Vodafone Idea share price traded higher on Thursday, extending gains for the third straight session, amid heavy buying volumes. Vodafone Idea shares rose as much as 2.38% to ₹ 7.30 apiece on the BSE. The telecom stock has rallied 15% in five sessions.
The latest gains in Vodafone Idea shares come amid reports that the telco seeks to raise ₹ 25,000 crore in loans from banks to bolster its network and compete better with large rivals.
According to a Bloomberg report, Vodafone Idea is talking to lenders to borrow about ₹ 25,000 crore ($2.9 billion) in loans and State Bank of India (SBI) will likely lead a consortium of lenders.
The debt is expected to be a mix of domestic and foreign loans with a tenor of about 10 years, the report added, quoting sources privy to the development.
Global banks too are expected to join the consortium and the fundraising drive would be concluded in a year, the Bloomberg report said.
In May, Vodafone Idea board of directors had approved raising of ₹ 20,000 through equity or loans.
A successful loan raise would help Vodafone Idea fund its capital expenditure and roll out a speedier network as it looks to reclaim market share.
In April, the government increased its stake in the debt-laden telco to 48.99% by converting a portion of its spectrum payment liabilities into equity.
Vodafone Idea share price has gained 5% in one month, and 3% in three months. However, the telecom stock has fallen 9% on a year-to-date (YTD) basis, and has dropped 60% in the past one year. Vodafone Idea shares have lost nearly 30% in five years.
At 10:00 AM, Vodafone Idea share price was trading 2.24% higher at ₹ 7.29 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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