Can good days appear for Vodafone Idea and what are the mistakes are the retailers doing in the market which should be avoided?
In this article, we are going to perform a liability analysis of the Vodafone Idea. We will also analyze the shareholding pattern and what are the mistakes that are done by the retail investors in the stock market.
1. Liability Analysis:
- The company at this stage may require to raise Rs. 25,000 Crore worth of capital to survive in the market.
- The new capital can be raised through either Equity Capital or Debt Capital.
- Equity funding is looking difficult at this time and for debt infusion, they need to free their assets from the bank as collateral.
Vi- Liability Analysis
2. Liability Breakdown:
- The total debt of Vodafone Idea Ltd. currently stands at Rs. 1.8 Lakh Crore.
- In which the debt from the financial institutions as of 31 March 2021 stands at Rs. 23,080 Crores.
- Vodafone Idea Ltd. has a Deferred Spectrum Payment Obligation to the government of Rs. 96,270 Crores.
- The Adjusted Gross Revenue (AGR) dues liability stands at Rs. 60,960 Crores.
Vi- Liability Breakdown
3. Rising Interest of Retail Investors in VI:
- The retail investors are showing great interest in the stock after its fall in every quarter.
- The share of Others (Retail Investors) in the company has risen from 5.61% on June 19 to around 22.28% in March 2021.
- This can be proven as a trap for retail investors as the DIIs and the FIIs are continuously decreasing their stake.
Vi- Increasing Participation of Retail Investors
The investors should look for the growth in the company and not survival. As we can see the institutional investors are losing interest in the company but the retail investors are gaining shares due to some advice that is not advised. Do Proper research and study before investing or consult a financial advisor before making any investment decisions.