The brokerage also increased the target price for other key players in the sector with Bharti Airtels target at Rs 1,430 and Reliance Industries target price at Rs 3,340, foreseeing an upside of 13.5% and 17.4%, respectively.
Voda Idea s Rs 18,000 crore FPO is one of the largest fundraisers in the history of Indian capital markets and will be followed by the proposed debt raise of Rs 25,000 crore. This could enable Vi to break out of the vicious loop of high debt, lower capex, inferior network quality, and subscriber loss, Nuvama said in a note.
On February 27, the companys board approved the proposed fundraising plan. With shareholders approval in place, the company expects to complete the equity fund raise in the current quarter.
The fundraising could be in one or more tranches through equity instruments, including rights issue, preferential issue of shares, qualified institutional placement of shares, or a combination thereof as may be considered appropriate.