Vodafone Idea trades 1.31% lower amid reports of fundraise
Vodafone Idea, in its latest annual report for FY23, said that it will have a focused approach to investments, and the company will be biased towards the 17 priority circles, which contribute 98 per cent of its revenue and 93 per cent of industry revenue.
Vodafone Idea (NSE:IDEA) share price traded under pressure on Tuesday amid reports of telco holding talks with network gear vendors for the finalisation of the 5G rollout strategy. It is reportedly in discussions to build up partnerships in the digital services domain to grow revenue streams and boost customer stickiness as the firm continues transition from a telecom operator to a technology business.
Vodafone Idea stock price quoted at Rs 7.55 apiece, down 1.31 per cent on NSE today at 1.45 PM. Vi's shares have increased 3.36 per cent in the last five trading sessions and 8.45 per cent in the last month. The one-year return on the Vodafone Idea stock is negative with the scrip correcting 14.69 per cent.
Vodafone Idea, in its latest annual report for FY23, said that it will have a focused approach to investments, and the company will be biased towards the 17 priority circles, which contribute 98 per cent of its revenue and 93 per cent of industry revenue.
Vodafone Idea in talks to raise funds
As per a media report, Vi is in talks with three to four private equity (PE) funds to raise around Rs 20,000 crore, according to Department of Telecommunications' (DoT) top officials who recently had a meeting with Aditya Birla Group's chairman Kumar Mangalam Birla.
Among all telecom operators, Vi has the lowest average revenue per user (ARPU) rate. In the last quarter of FY23, the company's ARPU was Rs 135, while its competitors Jio and Airtel recorded an ARPU of Rs 178.8 and Rs 193, respectively.
For the testing of devices on its network, Vodafone Idea has active 5G network clusters in Pune and Delhi. The key OEMs' (original equipment manufacturers) device testing on Vi's 5G networks is also complete. The company is awaiting funds to rollout 5G on a large scale.
MyVi app
Meanwhile, Vodafone Idea has launched expanded its digital presence in various categories, including offering live TV, entertainment, music, videos, gaming, education, skilling, and health, which are available on the MyVi smartphone application through integrated access. It has also partnered with various brands like Hungama Music.
“Our OTT app has been integrated with the Vi app giving customers access to their favourite shows & movies right on Vi app itself,” said Vi.
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