Latest news with #VodafoneIdea
Mint
a day ago
- Business
- Mint
Retail investors slam Vodafone Idea over user wipeout, stock crash
Retail shareholders ofVodafone Idea Ltd (Vi) raised concerns on Friday over the company's continued loss of subscribers and its fragile financial health. During the extraordinary general meeting (EGM) convened to approve the ₹20,000 crore fundraise, shareholders questioned the management about the lack of upside in the share price and a significant fall, particularly in the aftermath of the follow-on public offer (FPO) last year. The absence of Aditya Birla Group chairman Kumar Mangalam Birla from the meeting also drew concern, with a few shareholders expressing disappointment over his non-attendance. The government is the largest shareholder in Vodafone Idea with a 49% stake, followed by promoters—Vodafone Group at 16.07% and Aditya Birla Group at 9.5%. Retail investors own 14.96% of the company. 'Despite the previous fundraises, including the government conversion, there is no upside in the share price. In fact, the government's equity investment (via dues conversion) in the company has also gone into losses (at the current share price). If the management cannot handle the company, it should consider selling or surrendering it to the government," Santosh Kumar Saraf, a retail shareholder of the company, said during the meeting. Also Read: Faster WiFi plan hits spectrum interference worry Saraf wondered aloud what would happen if the company defaulted even after the fundraiser. Lately, the government has been exploring a resolution on the telecom operator's substantial dues. As of 31 March, Vodafone Idea's total government dues stood at around ₹2 trillion, including ₹1.19 trillion in spectrum dues and ₹83,400 crore adjusted gross revenue (AGR) dues. Mounting expenses In the absence of any relief from the government, starting 31 March 2026, Vodafone Idea will have to pay an annual instalment of over ₹18,000 crore for the next six years towards AGR and spectrum dues to the government. The dues are under moratorium, which will expire in September. In 2025-26 itself, Vodafone Idea will have to pay ₹16,428 crore towards AGR dues and ₹2,539 crore towards deferred spectrum dues. Going by the company's share price performance, the Friday closing share price of ₹7.40 is over 38% lower than the FPO listing price of ₹12 in April last year. In fact, the government's investment in Vodafone Idea through two equity conversions at ₹10 a share has also fallen by 26% at the current share price. In August 2018, when Vodafone Group completed its merger with Idea, the company's share price was ₹30. 'The company needs to focus on increasing its business. Many small investors are stuck in the company for the last so many years," said Redeppa Gunduluru, another retail investor, who has expressed concerns over the losses he incurred recently and the volatile share price. 'Vi's continued subscriber losses and weaker data net adds remain key concerns. Despite potential acceleration in network investments, we believe regaining subscribers will remain a tall ask for Vi, given that peers—with superior free cash flow generation and deeper pockets—can keep customer acquisition costs higher," said analysts at Motilal Oswal in a note dated 2 June. 'Further, with no relief so far on AGR dues (repayments commence March 26) and no breakthrough on the debt raise, we believe Vi is likely to face an annual cash shortfall of ₹20,000 crore and may be unable to meet its capex guidance of ₹50,000-55,000 crore over FY25-27," the analysts said. Narender Chauhan from Uttar Pradesh, another shareholder of the company, asked the management about the company's road map in the next 3-4 years, its plans for pan-India 5G coverage, and clarity on the satcom services launch after its recent collaboration with US-based AST SpaceMobile on direct-to-device connectivity. Dodging queries In an exchange filing on 30 May, Vodafone Idea said its board had approved raising another ₹20,000 crore through a follow-on public offering, private placement, or other permissible mode. The company said a capital raising committee will evaluate and decide on the potential route of fundraising. This fundraising approval comes at a time when the telecom operator is also looking to tie up ₹25,000 crore in bank debt to fund the capex for network expansion. When shareholders asked about the use of the ₹20,000 crore proceeds, the company's chief financial officer Murthy G.V.A.S. said, 'The proceeds will be used for capital expenditure." The management, however, did not address the shareholders' queries about the company's survival and revival concerns and the way forward. Also Read: Next-gen gadgets, WiFi speeds to get boost as India to open up new spectrum Notably, since the merger, Vodafone Idea has raised total equity of around ₹56,000 crore, out of which around ₹27,000 crore has been contributed by the promoters, the company told the Supreme Court in a recent plea to seek waiver on AGR dues from the government. The plea, however, was rejected by the court. In the petition, the telecom company had said it would not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues worth ₹83,000 crore linked to AGR. On the shareholder questions, Ravinder Takkar, the company's non-executive chairman, said, 'most of the questions were related to items outside the agenda items (of the EGM)." Takkar, however, asked the company to take note of some of the suggestions made by the shareholders. Pinning its hopes Vodafone Idea is set to incur capital expenditure of ₹5,000-6,000 crore for the first half of 2025-26 to enhance its network and infrastructure. However, its next leg of spending would be dependent on funds from banks, the company's CEO, Akshaya Moondra, had said in an earnings call on 2 June. 'I see no reason why the government should be constrained in any way to offer relief…," Moondra had said. Vodafone Idea is the most widely held stock, with over 6 million retail shareholders (more than the State Bank of India), according to the company's letter to the department of telecommunications on 17 April seeking further support. In May last year, Vodafone Idea said it would incur a capital expenditure of ₹50,000-55,000 crore over the next three years to expand its 4G network and launch its 5G service. "Completion of ₹25,000 crore debt-raising is key for executing Vi's ₹50,000-55,000 crore capex programme. Higher government flexibility around AGR dues offers a ray of hope," IIFL Capital said in a note on 2 June. Also Read: Will private 5G networks take off, finally? The retail investors also questioned the company's management about the fall in subscriber base and whether there are any plans to merge with state-owned BSNL. In an interview withMinton 23 April, Union communications minister Jyotiraditya Scindia said there are no plans to merge Vodafone Idea with BSNL. 'I do not think it is necessarily inefficient to have two competing businesses. There are multiple verticals where the government has competing businesses. Also, there was no physical cash outgo in this (Vodafone Idea) conversion. What the government has retained is an upside, no downside," Scindia had said. As of 31 March, Vodafone Idea had 198.2 million mobile subscribers. Even as Vodafone Idea has been losing subscribers for a long time now, the company's subscriber churn rate has slowed down during the March quarter. Compared to the loss of 5 million subscribers each in the September and December quarters, its subscriber churn slowed down to 1.6 million in the fourth quarter.
Time of India
a day ago
- Business
- Time of India
ET Graphics: MSMEs ready for digital future
India's Digital Maturity Index (DM I ) has steadily risen to 58.0, with 76% of MSMEs planning increased investment in cybersecurity and 72% in cloud technologies , a study of over 200,000 MSMEs by Vodafone Idea 's business vertical has showed. While digital maturity is improving, only 12% of MSMEs are fully digitalised, reflecting ongoing gaps in execution, especially among smaller businesses facing financial and advisory constraints, it said. Here are some key statistics. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Hae lainaa tänään – Netissä Resurs Bankista Resurs Bank Lue lisää Undo
Time of India
2 days ago
- Business
- Time of India
72% of MSMEs in India plan to increase Cloud spending this year: Vi Business
NEW DELHI: 72% of the micro, small and medium enterprises (MSMEs) across sectors plan to increase their Cloud spending this year, while 76% are investing in cybersecurity on the back of rising cyber threats, according to the findings of a study conducted by Vodafone Idea 's enterprise unit. ' MSMEs in India are clearly moving from digital curiosity to digital commitment, and that's an encouraging shift. The sharp rise in investment intent around cloud, cybersecurity, and automation shows that small businesses increasingly see technology as a growth enabler, not just a utility,' said Arvind Nevatia, chief enterprise business officer, Vodafone Idea, in a statement Friday, on the event of World MSME Day. Vi Business found that digital maturity remains uneven across sectors, but reported a sharp rise in investment intent. The professional services sector tops the list and may increase its digital transformation budgets by 73% this year, followed by retail (56%) and logistics (54%), while the education sector stands at the bottom of the ladder (32%). In its third edition of the 'Ready for Next MSME Growth Insights Study 2025', Vi Business said initiatives such as Digital India and BharatNet , along with an increase in mobile broadband usage, are driving smaller businesses to explore digital tools to enhance operational efficiency and expand their market reach. 'However, the digital adoption remains fragmented,' the company said, adding that with the right financial support and access to the right advisory support, India's small businesses are well-positioned to accelerate their digital journey. While awareness and intent are rising, the pace of digital adoption is still closely tied to financial capacity. The study found that MSMEs with higher turnover — typically in the ₹50– ₹100 crore-plus range — report significantly greater digital maturity, as they are better positioned to invest in advanced tools across cloud, automation, and customer engagement. In contrast, younger or smaller MSMEs, despite being digitally aware, continue to make measured, phased investments due to budget constraints. A separate study by PayNearby , a branchless banking and digital network, revealed that 33% MSMEs cited improved operational efficiency as a result of digital adoption. PayNearby said that 71% of MSMEs use smartphones as their primary business device, helping unified payments interface (UPI) emerge as the most preferred transaction method, indicating a deeper, more confident shift towards digital enablement at the last mile. Smartphone usage remains central to operations, with over 73% of small businesses witnessing increased income or improved operational efficiency as a result of adopting digital tools. Daily internet usage continues to rise, with 69% respondents consuming between 2GB to 5GB of data, largely supported by mobile hotspots, with 86% spending around ₹500–₹1,000 per month on internet usage, according to PayNearby, which surveyed 10,000 individuals and MSMEs in retail-focused segments such as kirana stores, mobile recharge outlets, medical shops, customer service points, and travel agencies. 'The MSME sector is the backbone of Bharat's economy, and the rapid adoption of digital tools such as smartphones, UPI, Aadhaar-enabled banking, and emerging AI workflows is proof that this segment is embracing modernisation,' said Anand Kumar Bajaj, Founder, MD & CEO, PayNearby.
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Business Standard
2 days ago
- Business
- Business Standard
Vodafone Idea stock sees twin breakout, chart hints at 13% upside potential
Vodafone Idea stock has witnessed a twin breakout with the stock seen trading above the super trend line hurdle and the higher-end of the Bollinger Bands on the daily chart. Rex Cano Mumbai Listen to This Article Shares of Vodafone Idea have been in limelight in recent trading sessions, with the stock up over 19 per cent in the last six days, from levels of ₹6.33 on June 19 to a high of ₹7.55 today, June 27. In the process, the stock has witnessed a twin breakout on the daily scale. The stock crossed the super trend line hurdle, and is now seen trading above the higher-end of the Bollinger Bands. Technically, the short-term bias for the stock is likely to remain favourable as long as the stock holds above the ₹7.35 -
Time of India
2 days ago
- Business
- Time of India
Vodafone Idea shares surge over 15% in 4 days: Here's why
Vodafone Idea shares rallied over 15% in the past four trading sessions to Rs 7.55, driven by reports of a major fund-raising effort and expectations of potential government relief on dues. According to a Bloomberg report earlier this week, Vodafone Idea is in talks to raise about Rs 25,000 crore ($2.9 billion) in loans to strengthen its network and compete more effectively with rivals Reliance Jio and Bharti Airtel . The State Bank of India is expected to lead a consortium of lenders, with the loan likely to be a mix of domestic and foreign borrowings, and a tenure of around 10 years, the report said, citing unnamed sources. Backed by billionaire Kumar Mangalam Birla, Vodafone Idea had previously delayed fund-raising due to concerns over its financial health and large outstanding dues to the government. However, with growing subscriber losses and signs of possible government support, the company has revived its efforts. Also Read: 73% down and still no bottom! Will Ola Electric break Rs 38 and slide to Rs 31? A successful loan deal would help the telco fund capex and accelerate network rollout, potentially aiding its turnaround strategy. Investor sentiment has also been lifted by reports that the Indian government may offer relief on Vodafone Idea's Rs 84,000 crore in dues, including adjusted gross revenue (AGR) liabilities. Some media reports suggest the government is considering extending the repayment tenure from six to twenty years. However, in an exchange filing on 24 June 2024, Vodafone Idea clarified, "We have not received any communication from the government in relation to the above-reported matter. As and when there is any development that requires disclosure, we will do the needful." Also Read: Street Favourite! 10 Nifty micro-cap stocks analysts expect to rally up to 60% In May, Vodafone Idea's board had approved a plan to raise Rs 20,000 crore through a mix of equity and debt. The recent reports of bank-led loan discussions indicate further funding plans may be underway. In April, the government raised its stake in the company to 48.99% after converting spectrum-related dues into equity. On 18 June 2025, Vodafone Idea announced a partnership with U.S.-based AST SpaceMobile to bring direct-to-device (D2D) satellite connectivity to India. The move is expected to support network coverage, especially in remote areas, and is part of the company's broader technology upgrade plans. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
