Why Vodafone Idea, Bharti Airtel and Reliance Jio are in Our News Part Today
Why Vodafone Idea, Bharti Airtel and Reliance Jio are in Our News Part Today
Representational Image
Jefferies speculated that Jio would be India's largest telecom company by the market share in the fourth quarter of 2019, but there was no hope of a lack of competitive intensity.
According to the media report, the issue of Rs 25,000 crore worth of rights issue of Vodafone Idea Limited was closed on Wednesday. The report said that this issue got a demand of shares of Rs 26,950 crore, while the public shareholders demanded shares worth Rs 8,700 crore against the allocation of Rs 6,750 crore, while the promoter groups bid for shares of Rs 18,250 crore.
Meanwhile, Vodafone Idea said on Wednesday that it will fulfill its funding requirements, along with other potential capital infusion plans, through a rights issue of Rs 25,000 crore. "We are mobilizing the capital through the issue of this right, the depravity of our stake in the Indus Towers will increase the liquidity. We believe that these will be sufficient to meet our funding for the future, with cash flows from our operations. In addition, we also have the option to monetize their fiber assets, "
Akshay Mundada, chief financial officer of Vodafone Idea Limited, said.
Separately, the A Jefferies report said on Wednesday that the Indian telecom sector will need another year to complete revival. "Jio's Focus Subscriber Remaining with Reliance (R) remains the same, market repair is still 12 months away. As we expect VodaIdea's market share will fall below 25% in the next 18 months, this will require additional funding in FY15.
Jefferies speculated that Jio would be India's largest telecom company by the market share in the fourth quarter of 2019, but there was no hope of a lack of competitive intensity.
The report of Jefferies says that the market share of Vodafone Idea will be reduced to 20% by FY22, while Bharti Airtel will remain stable at 30%.
It said that there was no possibility of price increase in this financial year and it will only happen once Reliance Jio will become a major player with more than 40% market share, which is likely to be in FY21.
It said that in the first half of 2019-20, Vodafone Idea and Bharti Airtel will raise equity funds of more than Rs 1 lakh crore due to individual rights issues of Rs 25,000 crore, and Reliance Jio's Demerit Fiber and Tower Inbuilt equity funding is required for liability of Rs 1 lakh crore.
He said that funding for Bharti and Reliance has diminished, but in our opinion there is insufficient for Vodafone.
Presently, Vodafone Idea is the market leader with 31.4% market share, followed by 30.6% of Bharti Airtel. Jio's share with more than 300 million customers is 29.2%.
Jefferies speculated that Jio would be India's largest telecom company by the market share in the fourth quarter of 2019, but there was no hope of a lack of competitive intensity.
According to the media report, the issue of Rs 25,000 crore worth of rights issue of Vodafone Idea Limited was closed on Wednesday. The report said that this issue got a demand of shares of Rs 26,950 crore, while the public shareholders demanded shares worth Rs 8,700 crore against the allocation of Rs 6,750 crore, while the promoter groups bid for shares of Rs 18,250 crore.
Meanwhile, Vodafone Idea said on Wednesday that it will fulfill its funding requirements, along with other potential capital infusion plans, through a rights issue of Rs 25,000 crore. "We are mobilizing the capital through the issue of this right, the depravity of our stake in the Indus Towers will increase the liquidity. We believe that these will be sufficient to meet our funding for the future, with cash flows from our operations. In addition, we also have the option to monetize their fiber assets, "
Akshay Mundada, chief financial officer of Vodafone Idea Limited, said.
Separately, the A Jefferies report said on Wednesday that the Indian telecom sector will need another year to complete revival. "Jio's Focus Subscriber Remaining with Reliance (R) remains the same, market repair is still 12 months away. As we expect VodaIdea's market share will fall below 25% in the next 18 months, this will require additional funding in FY15.
Jefferies speculated that Jio would be India's largest telecom company by the market share in the fourth quarter of 2019, but there was no hope of a lack of competitive intensity.
The report of Jefferies says that the market share of Vodafone Idea will be reduced to 20% by FY22, while Bharti Airtel will remain stable at 30%.
It said that there was no possibility of price increase in this financial year and it will only happen once Reliance Jio will become a major player with more than 40% market share, which is likely to be in FY21.
It said that in the first half of 2019-20, Vodafone Idea and Bharti Airtel will raise equity funds of more than Rs 1 lakh crore due to individual rights issues of Rs 25,000 crore, and Reliance Jio's Demerit Fiber and Tower Inbuilt equity funding is required for liability of Rs 1 lakh crore.
He said that funding for Bharti and Reliance has diminished, but in our opinion there is insufficient for Vodafone.
Presently, Vodafone Idea is the market leader with 31.4% market share, followed by 30.6% of Bharti Airtel. Jio's share with more than 300 million customers is 29.2%.
No comments