Vodafone Idea (Vi) shares have slipped below the Rs 6 figure on Tuesday morning trade session. At the time of writing, the Vi shares (listed as IDEA) are trading at Rs 5.85, down 3.31% from the previous close on Monday. On Tuesday, Vi's shares opened at Rs 6 and hit a low of Rs 5.90. The previous close of the shares was Rs 6.05. Vi's shares have suffered a lot over the last few months as they slipped below Rs 8. To recall, Vi's shares were trading at close to the Rs 15 figure in 2021 post the announcement of the relief measures by the government for private Indian telecom companies.
Vodafone Idea Unable to Raise Funds
Despite trying for a long time, Vi has not been able to raise funds. The telco was saying that it was the government's delay in the conversion of dues to the equity that was holding it back from raising investment from external investors. But now, it would be close to two months since the equity conversion happened, and we are yet to see any developments around fundraising from Vi. It is worth noting that the Aditya Birla Group (ABG), one of the promoters of the telco, had promised the government that they would bring fresh investments for Vi, and that was the reason why the government went ahead with the equity conversion.
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Not being able to raise funds is affecting the telco's ability to place commercial orders for 5G equipment. Until the orders can be placed, Vi can't launch 5G, and that is hurting the business of the telco majorly. Vi's competitors are offering 5G at no additional cost, and that would drive more of its customers towards the networks of Jio and Airtel. If things don't improve soon, the stock of the telco could potentially suffer even further in the near future.