Technical Analysis of Vodafone Idea

Vodafone Idea has bank guarantee (BG) obligations exceeding Rs 24,700 crore, while Airtel and Vodafone Idea combined hold BG liabilities over Rs 30,000 crore.

02-12-2024 / Monday

"Bank Guarantee Waiver to Boost Vodafone Idea's Debt Capacity"

"Vodafone Idea's debt prospects after the Union Cabinet waived bank guarantees for spectrum bought before 2022."

Vodafone Idea owes over Rs 24,700 crore in bank guarantees (BG), while Airtel and Vodafone Idea combined hold BG obligations exceeding Rs 30,000 crore. The government's waiver of bank guarantees for mobile operators is a positive step and will significantly help stabilize the sector.

What reason for the raise?

Earlier this year, Vodafone Idea raised Rs 24,000 crore through equity and is now aiming to secure an additional Rs 25,000 crore in loans, along with Rs 10,000 crore in bank guarantees or letters of credit.
This funding is crucial for sustaining its capital expenditure plans to compete with Airtel and Jio.
The telco plans to invest Rs 50,000-55,000 crore capex over three years, funded through debt and equity raises.

Technical Analysis :

No technical intimation for bull run.....!

Into clear Bearish trend from Jan 2024...!Observation :

Though the above news is positive for Vodafone Idea, there is no technical sign of reversal. Vodafone is in do or die situation between Rs 2-19. The overall trend is clearly bearish yet. We can trust Vodafone only if it is above Rs 19. Until then stay away....!

"Together let's chart our financial independence"

Gajapriya Annadurai
Full Time Trader & Investor, Founder @Stark School of Finance.

Technical Analysis of Vodafone Idea

"Bank Guarantee Waiver to Boost Vodafone Idea's Debt Capacity"

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