NEW DELHI: Vodafone Idea Ltd (VIL) shares fell sharply on Wednesday, a day after the telecom company’s board approved fundraising of up to Rs 45,000 crore through equity and debt. VIL crashed 14% on Wednesday to close at Rs 13.65 on the NSE. On Tuesday, the scrip had settled 4.45% lower at Rs 16.10 apiece.
Despite the big fundraising plan, brokerages feel that this might not be enough to rescue the telecom company as it has a total debt of Rs 2.5 lakh crore. The telco is already late on the 5G bus and has been conceding market share to Jio and Airtel. Nomura retained its ‘reduce’ call on the stock, with a target price of Rs 6.5 apiece. CLSA maintained a ‘sell’ call on the Vodafone Idea share with a target of Rs 5.