Shares of Vodafone Idea Ltd. opened higher on Thursday but fell soon after and are currently trading with losses.
The telecom service provider opened with gains of as much as 5% but sold off as selling pressure emerged soon after.
Vodafone Plc sold its remaining 3% stake in Indus Towers in a block deal worth ₹2,802 crore. The proceeds will be first used to clear Vodafone’s outstanding to lenders and the rest will be infused into Vodafone Idea for the latter to clear its dues with Indus Towers.
As of September, Vodafone Idea’s outstanding dues to Indus Towers were around ₹3,500 crore.
Vodafone Idea will hold a board meet on December 9 to consider issuing shares or other convertible securities to a promoter group entity for a sum not exceeding ₹2,000 crore. The issuance will be a direct pass through and no money will be infused into the company.
Out of the 22 analysts that have coverage on Vodafone Idea, 13 of them have a “sell” rating on the stock, five of them say “hold”, while four have a “buy” recommendation on the stock.
Goldman Sachs has the lowest target on Vodafone Idea at ₹2.4. The highest, from Ambit, is at ₹15.4.
Shares of Vodafone Idea are trading 1.2% lower on Thursday at ₹8.32. The stock is now down 25% from its FPO price of ₹11 and has more than halved from its 2024 peak of above ₹19 per share.
Vodafone Idea, earlier this year, had raised ₹18,000 crore through India’s largest Follow-On Public Offer (FPO).
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