Vodafone Idea shares slip ahead of board meet to discuss fundraising

Vodafone Idea settled 4 percent lower at Rs 16.85 on the National Stock Exchange on February 26.

Vodafone Idea shares fell a percent in the early trade on February 27 ahead of the Aditya Birla group company’s board meeting to discuss a proposal for a large fund raise.

At 9.18 am, the telecom operator's was quoting at Rs 16.7 on the National Stock Exchange (NSE), down almost a from the previous session.

The board of directors will meet on February 27 to consider all proposals for raising funds in one or more tranches by way of a rights issue or further public offer or private placement of shares, including preferential allotment, qualified institution placement, or through any other permissible mode, the cash-strapped company said.

No listed company of the Aditya Birla group is likely to participate in the fundraising plans and the promoters will fund the company, CNBC-TV18 said in a report, citing sources. The move will dilute the stake holding of the existing shareowners, which includes the Centre, the Vodafone Group as well as the Aditya Birla Group.

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The shares of the telecommunication company had gained 4 percent, buoyed by the news of the fund raise plans but snapped the gaining spree to settle 4 percent lower at Rs 16.85 on the NSE on February 26.

In the third quarter of the fiscal year 2023-24, the telecom operator recorded a net loss of Rs 6,985.9 crore, reflecting a decrease of 12.56 percent compared to Rs 7,990 crore in the corresponding period of the previous year.

However, the revenue came in at Rs 10,673.1 crore, an increase of 0.49 percent from the year-ago period.

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