Vodafone Idea Celebrates New Year with Sweet Goodbye to 2023

Vodafone Idea (Vi), India’s third largest telecom operator, has reached a sweet conclusion for 2023. The last trading day of December 29, 2023 saw a remarkable 21% increase in the stock of the telco, reaching the Rs 16 price point. Vi’s shares were trading at Rs 8 at the start of 2023, which was different from this. Over the past year, growth has increased by 100%.

The reason for the stock’s rise to a 52-week high price is unknown. Vi has yet to announce any fundraising plans or any information about the 5G launch. The fundraising that the telco’s management predicted would be completed by December was ultimately postponed. Vi’s 5G launch timeline is unknown even after acquiring the 5G spectrum for over a year.

The Telecom Regulatory Authority of India (TRAI) reported that Vi added active subscribers in September 2023. Vi had not added active wireless users in years. Private competitors such as Reliance Jio and Bharti Airtel are taking market share from the telecom. Vi’s active wireless subscriber base dropped below the 200 million mark in August.

To raise funds in the short term, the telco was reported to be looking to sell its fiber assets and in-building solutions (IBS). Vi could receive around Rs 10,000-12,000 crore as a result of the aforementioned move. In the short term, the telecom operator can pay off the dues and also order commercial 5G equipment from the vendors.

Vi’s failure to launch 5G networks in 2024 could lead to a significant loss of market share to competitors. It will be intriguing to observe the telecom’s performance in the December quarter of 2023. The amount of Vi’s debt that was added during Q3 FY24 will be a crucial statistic to examine.