Vi shares jump over 22% on BSE amid fundraise closure buzz
During the Q2 earnings call, Vi’s chief executive Akshaya Moondra told analysts that the telco expected to conclude its discussions relating to (funding from potential) equity investors in this quarter (Q3FY24). He had added that Vi’s talks with banks had already happened and that the current focus is on tying up the equity investment, basis which the banks would process the telco’s requests for bank funding.
Shares of Vi jumped 21% to close at Rs 16.02% on BSE Friday.
For the past three years, Vi has been struggling to raise funds needed to pay its large vendors like Indus and the government, expand its 4G coverage and also invest in its pending 5G rollout to compete effectively with bigger rivals Reliance Jio and Bharti Airtel.
Back in August, Moondra, had told the Department of Telecommunications (DoT) that the company had made significant progress in its ongoing talks with several groups of investors to raise equity and equity-linked capital and had term sheets from some potential investors.
But the telco has till date failed to close the fundraise.
Ever since the Vodafone-Idea merger over five years ago, loss-making Vi has been losing customers every month, unable to compete effectively on the mobile broadband turf with Reliance Jio and Bharti Airtel, shackled by its much delayed fundraise. Analysts have repeatedly warned that Vi’s customer losses could get even bigger once Jio and Airtel launch 5G services nationally in a few months.
