Amazon.com Inc. and Verizon Communications, the largest wireless carrier in the US, are set to resume talks to buy a significant stake in struggling Vodafone Idea Ltd for more than $4 billion
Amazon has a major presence in India and Verizon is present in India through its media and online unit Oath Inc.
About Vodafone Idea
Vodafone Idea is a joint venture between Britain’s Vodafone Group Plc and India’s Idea Cellular.
How much debt the company have to pay?
Vodafone Idea needs to pay around ₹50,400 crore more to the government in licence fee, spectrum usage charges, interest and penalties.
However, It has already paid ₹7,854 crore to the Government.
Company’s Performance in Q1
The company has been under immense pressure related to the AGR dues.
The company reported a loss of ₹25,460 crore in the June quarter due to one-time charges.
It includes provisions to cover payments due to the government.
Comment from the Company
Vodafone Idea said its board will meet on September 4 to discuss the fundraising proposals.
The board will assess capital raising measures such as public issue, preferential allotment, private placement, including a qualified institutions placement, by way of issuing equity shares of other instruments.
About Market Share of the Company
The telecom space is currently dominated by Reliance Jio with with 33.85 per cent.
Airtel at 28.06 per cent while Vodafone idea with 27.37 per cent of the total Market Share.
Stock Market Reaction
The stock was trading at Rs 10.79, up Rs 0.88, or 8.88 percent.
It has touched an intraday high of Rs 11.25 and an intraday low of Rs 10.45.
It witnessed a spurt in volume by more than 1.06 times.