Shares of Vodafone Idea gained up to 5 per cent today amid reports that the loss-making telco has prepaid a short-term loan of about Rs 2,700 crore to the State Bank of India (SBI). Vodafone Idea stock touched an intraday high of Rs 9.42, rising 5.01 per cent against the previous close of Rs 8.97 on BSE. Vodafone Idea stock is trading higher than 5-day, 20-day, 50-day and 100-day moving averages but lower than 200-day moving averages. It has gained 27.82 per cent in a year and fallen 39.62 per cent in 2022.
Total 284.31 lakh shares of Vodafone Idea changed hands amounting to a turnover of Rs 26.41 crore on BSE. The market cap of the telco rose to Rs 29,774 crore. Vodafone Idea is said to seek fresh funds to sign equipment supply deals for 5G networks according to reports. Leading telco Reliance Jio has already announced it would launch its 5G services starting Diwali (October 25).
ALSO READ: Vodafone Idea might take a little longer to roll out 5G services, here is what we know
Major Indian cities, including Delhi, Mumbai, Chennai, and Kolkata, will be among the first to get the Jio 5G network.
The ailing telco has undertaken the route to raise fresh funds as the government was not keen on converting Vodafone Idea’s accrued interest on deferred AGR-related dues into equity. Vodafone Idea’s newly named chief executive officer Akshaya Moondra recently informed shareholders that the company was in talks with various banks for funding arrangements.
Vi’s 5G launch timeline could be set only after these funds were arranged and gear procurements firmed up, Moondra added. Vodafone Idea reported a loss of Rs 7,296.7 crore in the quarter ended 30 June, 2022. The telco major’s loss marginally narrowed from Rs 7,318.6 crore in the corresponding quarter last fiscal, but widened from Rs 6,563.1 crore in the preceding quarter (Q4FY22).
ALSO READ: Stocks in news: Reliance, Vodafone Idea, ACC, SpiceJet and more
The telecom’s revenue from operations increased 13.7 per cent to Rs 10,410.10 crore in the quarter under review as against Rs 9,152.3 crore a year ago. On a YoY basis, revenue growth was strong, highest since merger with Aditya Birla’s Idea. EBITDA for the quarter was Rs 4,330 crore.
