When Vodafone Idea (Vi) announced a ₹10,000 crore expansion plan, its share price rose by 7% in intraday trading, hitting a high of ₹8.99. This move is seen by investors as the moment of truth for the struggling telecom giant.
₹10,000 Crore Expansion Plan: A Major Venture
Vodafone Idea has pledged to invest ₹10,000 crore in expanding its network up to next March. In the past nine months, it has spent as much capital as this huge outlay—which demonstrates that it has some pretty aggressive growth plans.
How will money be used?
5G complements: expanding the service range of a high-speed network
- Infrastructure update: On key places fortifying tangent range.
- Better user experience:clarifying call quality, quick data
Brokerage reports show that Vi has already spent ₹5,300 crore on capex between April and December 2024, which is more than enough to demonstrate its determination to network extension.
Vi Needs ₹35,000 Crore: Sources of Finance?
Vodafone Idea needs urgently to find banking funds before its enormous expense for expansion is justified. The company has to raise ₹35,000 crore.
To fulfill its strategy, the company needs 3,500 million rupees in bank loans.
“At present we are confident,” said Vi management. “We expect bank financing t.”
Until the 2024 year end our cash on hand was 1800 crore which will cover immediate requirements.
Implication for Investors
As long as the funding is in place, Vi may enjoy a strong turnaround.
If financing bottlenecks persist, the company’s growth could grind to a halt.
Government Equity Swapping: A Determinative Move
Vodafone Idea is in discussions with the government to swap its dues for equity. At present, however, Vi is having to fork out 43 000 crore rupees after a failed plea for re-calculation.
If it agrees to convert some of the bur Joe on yits books into equity, the government could:
Ease financial pressure
Restore confidence of other investors
Help strengthen Vi’s future
Vodafone Idea Stock Performance: Rollercoaster
However, today the Vodafone Idea stock quickly jumped 7 percent, marking a twelve-month high.
Trend of Stock Indexes
Today’s rise of 3%
Decline of 41.22% over last year
52 week high : 19.18 rupee
An Investment In Vodafone Idea?
The company’s hopes rest on a combination of venture strategy, financing odds I\and government support. Before you decide whether to share that optimism, keep up with what happens next.
Statement
This article is published for your information. Before making any money-plummeting mistakes, It is essential that you consult with a qualified financial advisor.