Voda-Idea Share Price: What is the future of Voda-Idea? Know what can happen to the company in 1-2 years?

News Topical, Digital Desk : Voda-Idea Share Price: A big update has come regarding the future of Vodafone Idea Ltd. Telecom service provider Vodafone Idea Ltd., which is under heavy debt, is currently facing no serious threat to its existence. 

Malhotra said that Vodafone Idea's chances of survival are strong for at least the next one to two years, especially after the recent conversion of spectrum liabilities into equity. He also said that spectrum-related liabilities can be converted into more equity in the future.

He said, "Therefore, I do not think there is any future-related problem for Vodafone at the moment, as the company has the option to convert a part of the spectrum debt into equity in the coming years; however, Gaurav admitted that challenges remain from a business perspective." 49% stake in the company Earlier, Vodafone Idea had warned that without additional support from the government, it would not be able to continue its services after the financial year 2025-26. After the recent equity conversion, the government has a 49% stake in the company. Malhotra also pointed out the limited network investment capacity of the company. He said, "Network investment is not happening as much as it should. The one who makes better network investment wins in the market, this is true not only in India but also globally." A day earlier, HSBC reiterated a 'Reduce' rating on Vodafone Idea, citing the company's high debt and increased valuation. HSBC reduced the stock's target price from ₹6.50 to ₹5.90 per share. 

What was the warning? Foreign brokerages had warned that delays in Vodafone Idea's network investment planning could give Airtel and Jio an opportunity to increase market share. Vodafone Idea's customer share is projected to fall to around 17% in FY25 from 21% in FY22 as the company's network investment lagged behind competitors. HSBC believes that if the company continues the capex cycle started in FY2025, the pace of decline in customer share could slow down from FY2026. However, further delay in investments could lead to rapid increase in market share of Airtel and Jio. Shares of Vodafone Idea are trading 1% higher at ₹ 7.04 on Wednesday. The stock has fallen 12% so far this year.

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