Shares of Vodafone Idea advanced 8.3% to Rs 17.65 on the National Stock Exchange after the company’s board will meet to consider raising funds. The company in an exchange filing said that Vodafone’s board will meet on February 27 to consider and evaluate proposals for raising funds in one or more tranches.
The company would be looking at rights issue, FPO, preferential allotment, QIP, and other options to raise funds.
The company can raise funds through “…by way of issue of equity shares or by way of issue of any instruments or securities including securities convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, and/or non-convertible debentures including non-convertible debentures along with warrants, which may or may not be listed,” the company said in the filing.
The company’s stock was hovering near its upper band of Rs 17.90 on February 23. The company touched its 52-week high of Rs 18.40 on January 01.
In the last five days, the company’s stock has risen almost 10% and nearly 2.3 times in the last six months. The stock has climbed almost 165% in the past year. However, it has erased 1.7% wealth of investors in the last five years.
To compare the benchmark index over the same period. The 50-stock index Nifty 50 has risen 0.8% in the last five days and nearly 15% in the last six months. In the long term, the index has risen over 27% in the past year and almost 105% in the past five years.