Has the turnaround begun ?
The stock has started making higher lows from past few months
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This is one step where now there are 2 listed players owned by Govt
MTNL and Idea
So to have better synergy the merger is the best option
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Government is not here to manage these companies.Govt will divest its equity once the tide turns.
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Vodafone to raise Rs. 4,500 from promoter entities at a price of Rs. 13.30 per equity share. See the press release here.
Does anyone think this actually makes much of a difference to the company? Per the reported numbers they have about Rs. 5,300 crore interest expense per quarter and if you read the cash flow statement for the period ended 30th September 2022(see here), the actual outgo seems to be much lower at about 1250 Crore for first half - this could be because, much of the interest would be payable upon maturity of debts which were due subsequent to September close. I believe current equity inflow would just help the company pay the interest and principal on debts which are due for repayment during current and next few quarters and the dues to Industowers . Note that quarterly operating profit of the company is about Rs. 3,800.
Note that on top of the debt and interest worries, they need to keep the business relevant for the customers and at this stage, I’m not sure who will fund the money required for capital expenses (which should at least be 40% of current depreciation expense resulting in another Rs. 5,000-6,000 Crore outgo annually) - then comes the investment to be ready with 5G!
It is certainly a positive sign that Vodafone and Birla’s are investing into a bleeding business and currently the only a hope left with the minority investors is that the promotors will find a solution to turn around the operations.
The company will need to improve its operating profits to at least 5000 Crore per quarter and reduce its quarterly interest expense to about Rs. 3,000 for survival. For them to achieve this, they will need to hold on to current customers, improve ARPU by at least 20%, get a credible long term investor(s) to pump in another Rs. 10,000 Crore and pray that no other negative untoward event occurs for another 3 years at minimum.
If Vodafone-Idea ever becomes a turn-around story, it would be nothing short of a miracle(and miracles do happen!)
AJ
Disclosure: No exposure.
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Vi fund raising seems confirmed hence assest monetisation postponed
Can Or will Adani think to buy vodafone?
He is already bidding for spectrum in Gujarat circle, they are saying captive, but that seems back door entry
I don’t think anyone would be interested to buy Vodafone at this point with that kind of debt. Only possibility of someone taking over vodafone is through insolvency process at throw away price like how Patanjali bought ruchisoya without debt and turn-around it
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Valuation of idea must watch Bhasin Ke Hasin Share: संजीव भसीन ने आज Tata Power Fut, Vodafone Idea Fut और PFC Fut में क्यों दी निवेश की सलाह? | Zee Business Hindi
Satellite communication can be future and NELCO is one beneficiary
https://twitter.com/resonant_news/status/1566034894966366214?s=24&t=MR-GMu2aFASGHDyWnAXH9w
Bad results by Vodaphone Idea. Disappointed.
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Vi up 21% as Elon Musk’s Gujarat visit on January 10 sparks market talks of a deal by the tech billionaire to partner with an Indian telecoms player. Amazon too will require a spectrum partner for its space linked broadband business and Vi could be a potential suitor for any of the two, believes the market. Recently, Vi also paid Rs 1701 crore to the government for 5G spectrum it had acquired in the 2022 auction
They could still lease out the spectrum right? without Elon/ Bezos taking a stake.
Disclosure : no positions. Curious about the recent rise in prices.
Is the company truly getting a new lease of life or again getting ready to flatter to deceive? Given the quality of names participating in fund raising, it should give investor some confidence.
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