Vodafone Idea Shares Slide 52-Week Low, What’s Happening

Vodafone Idea’s (Vi) shares fell 2.13% on Wednesday’s early trade session. At the time of writing this, the telco’s shares are trading at Rs 6.90, a negative of 2.13% from the previous close of Rs 7.05. It is a 52-week low for Vodafone Idea’s shares. The telco is not able to raise funds and move ahead with its business plans. For days now, Vi’s shares have been trading around the Rs 7 mark. But on Wednesday, the shares touched a 52-week low, meaning more hurt for the telco.

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Vodafone Idea has been waiting for the Indian government to convert its dues to equity for more than a year now. The government’s stance is that until Vi’s promoters don’t infuse meaningful capital into the company, it won’t go ahead with the equity conversion. Vi’s plans to roll out 5G are also stuck as the telco has no money to place commercial orders.

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Vodafone Idea Likely to Use Fresh Funds to Service Old Debt

Most of what Vi will make will go towards clearing debt and dues to lenders and vendors. This is because if Vi defaults on payments, then it can be dragged to bankruptcy court. This is one of the major concerns for lenders to issue fresh loans. The fresh loans would just be used to service the old loans, and the ball would not move forward at all.