Vodafone Idea shares tumble 10%; hit lower circuit limit

New Delhi: Shares of debt-laden Vodafone Idea Ltd on Wednesday plummeted 10 per cent after the fundraising announcement by the company failed to lift investors' sentiment.

The stock plunged 9.95 per cent to Rs 14.29 -- its lower circuit limit -- on the BSE.

It fell by 9.77 per cent to Rs 14.30 -- its lower circuit limit-- on the NSE.

Struggling telecom firm Vodafone Idea on Tuesday said its board has approved raising up to Rs 20,000 crore in equity from promoters and other investors by June as it looks to shore up finances for much delayed 5G rollout and strengthening 4G services.

The debt-laden firm, where the government also holds just over 33 per cent equity stake, plans to raise Rs 45,000 crore through a mix of equity and debt with hopes of matching services offered by rivals Jio and Bharti Airtel that could arrest subscriber churn.

The fundraising, when it happens, will also arm Vodafone Idea with firepower to improve competitive positioning in the Indian telecom market, where it trails larger rivals Reliance Jio and Bharti Airtel, by a wide margin.

Vodafone Idea has been fighting a desperate battle for survival -- it has a debt of Rs 2.1 lakh crore, is reporting quarterly losses, and is haemorrhaging subscribers month after month.