Vodafone Idea Q4 Results, Vodafone Idea share price target, Vodafone Idea share price news, Vodafone Idea 5G | Markets News

Vodafone Idea mulls rolling out 5G on large scale in 6 months and also plans up to Rs 55,000 crore investment in 3 years. All eyes will be on Vodafone Idea share price, as to whether the stock would rally or not.

Vodafone mulls rolling out 5G on large scale in 6 months: Will share price increase (Pic: VI and depositphotos)

New Delhi: With Vodafone Idea announcing its plans to roll out 5G in a vast scale and pump in around Rs 55,000 crore investment in 3 years to expand and strengthen the 4G coverage, the debt-ridden company may see the stock market enthusiasts bet on the company’s shares.

The debt-ridden Vodafone Idea announced that it is planning to begin 5G rollout in six months in select cities and areas where 5G device concentration is high.

Confirming the development, Vodafone Idea CEO Akshaya Moondra said the company will invest Rs 50,000-Rs 55,000 crore over the next three years with focus on expanding and strengthening 4G coverage. The top official said that the company is focusing on 4G coverage as it thinks that it is the main reason why it continues to lose subscribers.

Vodafone Idea 5G plans

Divulging further, the Vodafone Idea CEO said the rest of the money will be spent to roll out 5G in some cities and in the changing trends as per the market conditions.

“Rest of the investments in capacity growth will happen as the traffic grows. We expect that we should be rolling out 5G on a large scale from about six months from now. The main focus is going to be the main cities or other areas where there is a large concentration of 5G devices. We will make investments as the market evolves,” Moondra said.

“We need to focus on expanding coverage in 17 priority circles so that we are competitive. We will be investing in non-priority circles as well,” Moondra said.

VIL CEO admitted to losing customers because of weak network coverage. He said the telecom will pump in money to help the company arrest customer churn.

“As far as decongestion is concerned, we should be able to start adding capacity in a couple of months from now. Maybe even faster. Capacity addition of decongestion should stop in two months.

“As far as coverage is concerned, I believe we will be able to start the rollout against that requirement in 3-4 months from now and we should be able to complete the large part of coverage to be completely competitive in a period of 12-15 months,” Moondra said.

Vodafone Idea Q4 Results

Vodafone Idea declared its Q4 results and posted losses of Rs 7,675 crore in the March quarter of 2023-24. The debt-ridden telecom operator’s consolidated revenue of operations remained at Rs 10,607 crore. In 2023-24, VIL’s losses stood at Rs 31,238.4 crore from Rs 29,301.1 crore a year ago, while the total debt of the company was declared at around Rs 2,07,630 crore. Annual revenue from operations was slightly on the upper side by 1.1 per cent to Rs 42,651.7 crore from Rs 42,177.2 crore in 2022-23.

Vodafone Idea share price

Vodafone Idea share price has been hovering around Rs 13. The telecom stock has seen some upward movement in the last few days despite weak Q4 2023-24 results. The Vodafone Idea share has rallied around 90 per cent in the last 1 year. The stock ended at Rs 13.25 on May 17, 2024.

Vodafone Idea’s board has given its green signal to raise Rs 45,000 crore. Notably, Rs 20,075 crore has already been raised, comprising Rs 18,000 crore through follow-on-public offer (FPO) and Rs 2,075 crore through preferential equity allotment to an Aditya Birla Group firm.

VIL confirmed to engaged in talks with a consortium of banks to raise up to Rs 25,000 crore and additional non-fund-based facilities of up to Rs 10,000 crore.

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