Vodafone Idea (NSE: IDEA) Share Price: Shares of Vodafone Idea, a telecom company struggling with the financial crisis, jumped by more than 4 percent today. This rise in its shares has come due to the strong response to the follow-on public offer (FPO) of the company.
Vodafone Idea’s FPO worth Rs 18 thousand crore was subscribed 6.99 times in three days and the share of investors of every category was filled in three days.
Due to profit booking, the price softened a bit, and at the end of the day it closed at Rs 14.39 with a gain of 11.64 percent. FPO of Rs 18 thousand crore is the largest ever in the country.
In this FPO of Rs 18 thousand crore, the share of Qualified Institutional Buyers (QIB) was 19.31 times, the share of Non-Institutional Investors (NII) was 4.54 times and the share of retail investors was 1.01 times.
Under this FPO, the company will issue shares for Rs 11 and these shares will be listed on April 25.
Vodafone Idea: The Company Is Preparing To Raise Funds From Banks
With the success of the FPO, Voda Idea’s path to raising Rs 25 thousand crore from banks will be strengthened.
Apart from this, the company’s position will also be strengthened regarding 4G and 5G. Beyond that, it can also assist the company in bringing its clients back. Rs 5720 crore raised from FPO will be used to bring 5G.
Recently, in a data, Voda Idea CEO said that the FPO money is enough for the capex plan for the next three years.
Vodafone Idea: Know What Is The Opinion Of Experts
Of the 16 analysts covering Vodafone Idea, 12 have given it a Sell or similar rating. They have given it an add rating and in a bull case, its target price has been fixed at Rs 19.
On the chart, it has taken support at the 200-day moving average level. Its RSI (Relative Strength Index) is currently 53.
Market analysts say that this funding will give Vodafone Idea enough strength to compete with Reliance Jio and Bharti Airtel.
It also will ensure that triangular competition is maintained in the telecom market of India.
He stated the company Vodafone Idea plans to expand its 5G and 4G networks through this investment.
This will allow the company to stop the constant decline in the number of customers.
It will also help in retaining high-paying customers in the premium market.
Vodafone Idea: Late Entry Into The 5g Market Will Be Beneficial!
Analysts also believe that Vodafone Idea may also benefit from late entry into the 5G market.
It has a chance to learn from the experiences of its larger rivals who have already rolled out 5G networks across India.
An analyst, said, “The FPO as well as other fund-raising plans will provide Vodafone Idea enough strength to be competitive with Jio as well as Airtel in the near to medium term. It will also help to ensure that the Indian mobile market stays triangular.”
This will help, which will maintain competition and companies will compete to offer better offers to customers.
Vodafone Idea FPO: How Much Was The Issue Subscribed For?
Vodafone Idea’s FPO closed with 6.36 times subscription on the last day. Investors placed bids for equity shares worth about Rs 8,011.80 crore.
Through FPO, the telecom company had put 1,260 crore shares for sale.
The company will get capital of Rs 18,000 crore from FPO. Vodafone Idea plans to raise a total of Rs 45,000 crore from different sources. The FPO is part of the scheme.
The founder of ComFirst Consulting said maintaining competitiveness in the marketplace can be “undoubtedly” of utmost importance.
The government has also always expressed its stance against the market being dominated by only two companies.
An analyst said, “No government would want the collapse of a large and high-profile company like Vodafone Idea, which has a customer base twice that of BSNL and has about 22 crore customers. Vodafone Idea is here to stay for a long time.”
About Vodafone Idea Ltd
Vodafone Idea Limited was formed as a joint venture between Aditya Birla Group, and Vodafone Group. The company is India’s biggest telecom service provider.
In India, the company offers voice and data services on a 2G/3G/4G platform. The company’s large spectrum portfolio will support the growing data and voice demand.
It is committed to providing delightful customer experiences, and to creating a truly “Digital India” by enabling millions to connect and create a better future.
The Company is developing infrastructure for newer and more intelligent technologies.
The company is listed on the Bombay Stock Exchange and National Stock Exchange in India.
Fundamental Analysis of Vodafone Idea Ltd
| Market Cap | ₹ 65,703 Cr. |
| Current Price | ₹ 13.75 |
| 52-wk High | ₹ 18.4 |
| 52-wk Low | ₹ 6.30 |
| Stock P/E | — |
| Book Value | ₹ -18.7 |
| Dividend | 0.00 % |
| ROCE | -3.82 % |
| ROE | — |
| Face Value | ₹ 10.0 |
| P/B Value | — |
| OPM | 39.9 % |
| EPS | ₹ -6.16 |
| Debt | ₹ 2,40,651 Cr. |
| Debt to Equity | — |
Vodafone Idea Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹ 15 | ₹ 19 |
| 2025 | ₹ 21 | ₹ 26 |
| 2026 | ₹ 27 | ₹ 29 |
| 2027 | ₹ 31 | ₹ 34 |
| 2028 | ₹ 45 | ₹ 65 |
| 2029 | ₹ 70 | ₹ 86 |
| 2030 | ₹ 100 | ₹ 154 |
Vodafone Idea Ltd Shareholding Pattern
| Promoters Holding | |
| Mar 2023 | 50.36% |
| June 2023 | 50.36% |
| Sept 2023 | 50.36% |
| Dec 2023 | 50.36% |
| Mar 2024 | 48.91% |
| FII Holding | |
| Mar 2023 | 2.28% |
| June 2023 | 2.29% |
| Sept 2023 | 2.46% |
| Dec 2023 | 2.27% |
| Mar 2024 | 1.97% |
| DII Holding | |
| Mar 2023 | 0.54% |
| June 2023 | 0.73% |
| Sept 2023 | 1.80% |
| Dec 2023 | 3.05% |
| Mar 2024 | 2.20% |
| Govt. Holding | |
| Mar 2023 | 33.18% |
| June 2023 | 33.18% |
| Sept 2023 | 33.18% |
| Dec 2023 | 33.18% |
| Mar 2024 | 32.23% |
| Public Holding | |
| Mar 2023 | 13.64% |
| June 2023 | 13.44% |
| Sept 2023 | 12.19% |
| Dec 2023 | 11.14% |
| Mar 2024 | 14.69% |
Vodafone Idea Ltd Share: Last 5 Years’ Financial Condition
To better understand how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 37,092 Cr |
| 2020 | ₹ 44,958 Cr |
| 2021 | ₹ 41,952 Cr |
| 2022 | ₹ 38,516 Cr |
| 2023 | ₹ 42,577 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ -14,604 Cr |
| 2020 | ₹ -73,878 Cr |
| 2021 | ₹ -44,233 Cr |
| 2022 | ₹ -28,245 Cr |
| 2023 | ₹ -29,983 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 1.82 |
| 2020 | 16.11 |
| 2021 | -4.12 |
| 2022 | -3.08 |
| 2023 | -0.18 |
Last 10 Years’ Profit Growth:
| 10 Years: | — |
| 5 Years: | — |
| 3 Years: | 10% |
| Current Year: | -4% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | — |
| 5 Years: | — |
| 3 Years: | — |
| Last Year: | — |
Sales Growth Over 10 Years:
| 10 Years: | 7% |
| 5 Years: | 8% |
| 3 Years: | -2% |
| Current Year: | 2% |
Conclusion
This article is a complete guide about Vodafone Idea Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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