Vodafone Idea share price jumps over 9% on fundraising reports

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Vodafone Idea share price jumped over 9% on Friday's trading sessions following Vodafone Idea's notification to the Department of Telecommunications (DoT) that it has received term sheets from many possible investors for its equity fundraising, according to the Economic Times (ET) report. Vodafone Idea share price opened at intraday low of ₹8.03 apiece on BSE on Friday's trade and closed at ₹8.67 apiece, up 9.06%. Vodafone Idea shares have risen for the fourth consecutive session today.

According to Akshaya Moondra, CEO of Vodafone Idea, during the company's Q1 FY24 earnings conference call on August 16, they have proposed in a letter to the DoT to pay an installment of ₹1,680 crore for the 2022 auction of spectrum. Also Read: Shoppers Stop share price cracks over 11% as firm's MD, CEO Venu Nair resigns " We have submitted a letter to DoT that we propose to pay Spectrum Auction Instalment of ₹1,680 Crore towards 2022 Auction, which is due on 17th August 2023, by availing the grace period of 30 days with interest, in accordance with the terms of Notice Inviting Applications," said Moondra. One of the investors would seek a meeting with officials, according to the CEO of the company, Akshaya Moondra, according to the ET report, in order to obtain guarantees of ongoing government backing.

Vodafone Idea plans to raise money to carry out a four-year, Rs. 65,000 crore capital expenditure programme. “We continue to remain engaged with our lenders for further debt fundraising as well as with other parties for equity or equity-linked fundraising to make required investments for network expansion and 5G rollout to compete effectively.