Shares of telecom service provider Vodafone Idea Ltd. will be in focus on Wednesday, March 19, after the company announced the launch of its 5G services in Mumbai."With this rollout, Vodafone Idea is set to enhance mobile experience with widespread coverage at competitive pricing," the Vodafone Idea's exchange filing stated.Vodafone Idea's introductory offer prices unlimited 5G for its subscribers for plans starting at ₹299. The telecom operator also stated that it is further strengthening its network to meet the growing demand for high bandwidth applications like streaming, gaming and real time cloud access.
Vodafone Idea has partnered with Nokia for the 5G rollout in Mumbai. The company said it will continue to expand its 5G footprint across the country in a phased manner.It must be noted that while Vodafone Idea is still starting off on introducing its 5G services, its peers like Reliance Jio and Bharti Airtel have completed their pan-India rollout of 5G services.
In a note released last month, brokerage firm Motilal Oswal said that the stabilisation of subscriber losses is the biggest trigger for Vodafone Idea's long-term survival.
Based on the recently released telecom data, Vodafone Idea's subscriber base narrowed by another 1.71 million users during the month of December to 207.25 million. This was higher than the 1.5 million subscribers it lost in November.
Over the last 12 months, Vodafone Idea has raised equity worth ₹26,000 crore, including India's largest Follow-on Public Offer (FPO), through which it raised ₹18,000 crore and a promoter contribution of over ₹4,000 crore. The company has planned capex between ₹50,000 crore to ₹55,000 crore over the next three years.
Shares of Vodafone Idea ended at the highs of the day on Tuesday, ending 2.7% higher at ₹7.13. The stock is down 63% from its 2024-high of ₹19. The stock is also trading below its FPO price of ₹11.
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