Vodafone Idea Limited

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As the third-largest telecommunications service provider in India by subscriber base, Vodafone Idea Limited holds a formidable position both nationally and globally. According to the TRAI Subscription Report, their extensive subscriber network ranks them sixth globally among cellular operators in terms of the number of subscribers within a single country.

Service Spectrum and Technological Infrastructure

They operate a comprehensive pan-India network offering a diverse range of services including voice, data, and various value-added services (VAS) such as short messaging services (SMS) and advanced digital services across established 2G, 3G, and cutting-edge 4G technologies. Their service portfolio is further enriched by dedicated connectivity solutions tailored for their enterprise customers.

Licensing and Regulatory Compliance

Vodafone Idea Limited maintains active licenses for national long distance (NLD), international long distance (ILD), and internet service provider (ISP) operations. They are also registered to provide infrastructure provider (IP-1) services, allowing them to manage substantial inter-service area voice traffic as well as inbound and outbound international voice communications facilitated through their robust interconnection agreements.


Vodafone Idea Limited is strategically positioned to leverage its extensive network, robust service offerings, and strong promoter backing to continue its growth trajectory and strengthen its market position both in India and globally.

Objects of the Vodafone Idea Limited:

The company proposes to utilise the Net Proceeds towards funding of the following objects: i. Purchase of equipment for the expansion of the network infrastructure by: (a) setting up new 4G sites; (b) expanding the capacity of existing 4G Sites and new 4G sites; and (c) setting up new 5G sites; ii. Payment of certain deferred payments for spectrum to the DoT and the GST thereon; and iii. General corporate purposes.

Vodafone Idea Limited Details:

Open Date: Apr 18 2024
Close Date: Apr 22 2024
Total Shares: 16,363,636,363
Face Value: ₹ 10 Per Equity Share
Issue Size: 18,000.00 Cr.
Lot Size: 1298 Shares
Issue Price: ₹ 10 - 11 Per Equity Share
Listing At: NSE,BSE
Listing Date: Apr 25 2024

Promoters And Management:

Ravinder Takkar is the Non-Executive Chairman of the Company. He holds a bachelor’s degree in science from Loyola Marymount University, USA. Prior to his current role as the Non-Executive Chairman of the Company, he served as the managing director and chief executive officer until August 18, 2022. He also serves as a director on the boards of Indus Towers Limited and Cable and Wireless Global (India) Private Limited. Anjani Kumar Agrawal is an Independent Director of the Company. He is a qualified chartered accountant and is an alumni of INSEAD and Cambridge Institute for Sustainability Leadership. He has also worked with NITI Aayog on the Strategy for New India @ 75 policy. He is a fellow member of the Institute of Directors, India and also serves as a director on the boards of Firstsource Solutions Limited, Emami Limited, Aditya Birla Sunlife Trustee Private Limited, Welspun Corp Limited, Evonith Value Steel Limited and Evonith Metallics Limited. Arun Kumar Adhikari is an Independent Director of the Company. He holds a bachelor’s degree in technology (chemical engineering) from the Indian Institute of Technology, Kanpur and a post-graduate diploma in management from the Indian Institute of Management, Calcutta. He has also completed the Wharton Advanced Management Program from the Wharton School, University of Pennsylvania. He has previously worked with Hindustan Lever Limited (now Hindustan Unilever Limited), wherein, he also carried out an international assignment with Unilever Asia Amet, Singapore. He has worked as an external advisor with McKinsey and Company. He currently serves on the board of various companies, including Aditya Birla Fashion and Retail Limited, Ultratech Cement Limited, Voltas Limited and Aditya Birla Sun Life Insurance Company Limited.

Financials of Vodafone Idea Limited:

Particulars ( In Crore )
Revenue from Operations 41,952 38,516 42,177 32,045
Other Income 174 129 311 81
Total Revenue 42,126 38,645 42,489 32,126
Cost of trading goods 3 7 8 15
Employees Benefit Expenses 2,030 1,735 1,866 1,578
Network expenses & IT outsourcing cost 9,594 9,818 10,078 7,446
License fees & spectrum usage charges 4,130 4,199 4,002 2,768
Roaming & access charges 5,291 2,916 3,899 3,055
Subscriber acquisition & servicing expenditure 1,768 1,971 3,678 3,201
Advertisement, business promotion expenditure & content cost 788 979 941 472
Other Expenses 1,404 855 887 720
EBITDA 17,120 16,166 17,128 12,871
Depreciation 14501 14657 14258 10287
Amortisation 9137 8927 8791 6595
Finance Cost 17,998 20,981 23,354 19,485
EBIT -6,519 -7,419 -5,921 -4,011
OPM (%) 40.64% 41.83% 40.31% 40.06%
PBT -44253 -28234 -29298 -22744
Tax -20 11 4 820
PAT -44233 -28245 -29301 -23564
NPM (%) -105.00% -73.09% -68.96% -73.35%
No.of Shares 6648.34 6648.34 6648.34 6648.34
EPS -6.65 -4.24 -4.40 -3.54

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Vodafone Idea Limited 42,177 -29,301 -4.40 -2.5 11 73,132
Bharti Airtel Limited 139,145 12,287 14.97 63.5 1,224 7,24,563
Bharti Hexacom Limited 6,579 549 21.97 58.0 810 30,581
* All the data is as per FY23.

Recommendation on Vodafone Idea Limited:

Review and Recommendation of Vodafone Idea by team IZ is 4/10. 1. Vodafone Idea Limited is recognized as the third largest telecommunications service provider in India based on their extensive subscriber base and globally, as the sixth largest cellular operator in terms of subscribers within a single-country operation, according to the GSMA Intelligence Database. 2. Service Offerings and Technologies Their comprehensive pan-India network allows them to offer a wide array of services including voice, data, enterprise solutions, and various value-added services (VAS). These encompass short messaging services (SMS) and a suite of digital services operating across mature and advanced technological platforms such as 2G, 3G, and 4G. Moreover, they provide specialized connectivity services to their enterprise clients. 3. Sales and Distribution Network Their distribution network is a cornerstone of their growth strategy. It includes over 10,000 distributors and hundreds of thousands of retail outlets spread across India. This network plays a pivotal role in maintaining their market presence and ensuring customer satisfaction through accessible service and support. 4. Strategic Alliances Their promoters include prestigious groups such as the Aditya Birla Group and the Vodafone Group, adding significant credibility and resource backing. The Aditya Birla Group operates in over 40 countries and the Vodafone Group offers mobile and fixed services to more than 300 million customers across Europe and Africa. 5. Spectrum and Infrastructure Their total spectrum holdings amount to 8,005.2 MHz, with a significant portion allocated to advanced technologies like 5G. They operate around 183,400 unique tower locations and maintain a robust infrastructure that supports extensive broadband and VoLTE services. 6. Coverage and Capacity Their network covers over 1.2 billion people and reaches into nearly half a million towns and villages across India, ensuring broad demographic and geographic service availability. 7. Risk Management They employ a rigorous credit risk management system, especially for their post-paid customers, to minimize defaults and maintain financial stability. This system includes detailed subscriber profiling, credit checks, and proactive fraud prevention strategies. 8. The Revenue has Increased from Rs.41,952 Crores in FY21 to Rs.42,177 Crores in FY23. 9. The EBITDA has Increased from 17,120 Crores in FY21 to 17,128 Crores in FY23. 10. The PAT has Decreased from (-44233) Crores in FY21 to (-29301) Crores in FY23. 11. As per FY23, CFO/EBITDA is 0.98, As per FY24, EPS is -4.72, 12. Market Capitalization is 73,132 Crore & P/E is -2.32x based on FY24.

Registrar of Vodafone Idea Limited:

  1. Link Intime India Private Limited

Company Address:

Vodafone Idea Limited Suman Tower, Plot No. 18 Sector 11, Gandhinagar-382011 Phone: +91 98246 34997 Email: shs@vodafoneidea.com Website: http://www.myvi.in/

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