Vodafone Idea shares surge 4% after block deal worth ₹234 crore, check key details

Vodafone Idea Ltd share price gained nearly 4% in trade on Wednesday, May 8, following a block deal worth ₹234 crore.

According to reports, a total of 19.04 crore equity shares changed hands in a block deal approximately ₹234 crore. The buyers and sellers in the block deal were not immediately known.

Vodafone Idea shares are in focus after the telco successfully concluded the ₹20,000 crore fundraising, including the ₹18,000 crore follow-on public offer (FPO). With the proceeds of the FPO Vodafone Idea aims to accelerate its network investments as well as reduce the gap it has with competitors on 5G rollouts and 4G coverage.

The company is planning to launch its 5G services in select cities over the next 6 to 9 months.

Shares of Vodafone Idea gained as much as 3.62% to hit an intraday high of ₹12.85 apiece on the NSE. However, the telecommunication services stock pared some gains and closed at ₹12.75 apiece, up 2.82%, ending a six-day losing streak.

Also read: Wealth creation thorough bonus shares

Vodafone Idea share price tanked almost 12% during the 6-day downward momentum.
The telecom services provider’s shares have declined 22% so far this year while falling more 15% over the last three months. However, the stock has jumped 82% over the last one year.

Vodafone Idea witnessed an improvement in average revenue per user (ARPU) for 10 consecutive quarters during the third quarter of FY24, led by a rise in price and customer upgrades, which in turn has supported revenue growth despite subscriber churn.

The company also said in a recent investor presentation that its debt from banks and financial institutions was reduced by ₹170 billion over the last two-year period.

Vodafone Idea came into existence in 2018 with the merger of Vodafone Group’s India business with Idea Cellular. The Aditya Birla Group firm is the third largest telecom operator in the country.