Vodafone Idea slips over 12.50% after telecom firm secures $1 billion equity commitment from investors

Vodafone Idea Share Price: Vodafone Idea slipped over eight per cent on BSE on Wednesday in the first trading session after the telecom company reportedly secured an equity commitment of $1 billion (around Rs 8,300 crore) from investors.

The stock of the firm closed trading lower by 9.43 per cent, or Rs 1.29, at Rs 12.39 on Wednesday.

The Vodafone Idea stock that closed the trading session at Rs 13.68 on Tuesday began trading at Rs 13.69 on Wednesday. It slipped to the day's low of Rs 11.93, a 12.79 per cent fall from the previous close.

The stock's high for the day was Rs 13.86.

Vodafone Idea's $1 billion equity commitment

Vodafone received a "soft commitment" from investors, which also includes funds committed from promoters as well, as per reports on Tuesday.

The telecom company wants to use the funds to pay vendors and meeting 4G and 5G capital expenditures.

Vodafone Idea's promoters include Aditya Birla Group and Vodafone Group, which hold 18.1 per cent and 32.3 per cent stakes, respectively. 

The central government, which owns nearly 33 per cent stake in Vodafone Idea, is unlikely to participate in the fundraising, according to reports.

(With inputs from IANS)