Vi shares crash after Goldman Sachs downgrades price by 83%
Vodafone Idea's shares experienced a significant drop of 14% on Friday, falling to ₹12.91 from the previous day's closing price of ₹15.09. This sharp decline was triggered by global brokerage firm Goldman Sachs, setting a new target price at ₹2.5 for the telecom company's shares. The revised target indicates a potential downside risk of up to 83%.
Goldman Sachs predicts further share loss for Vodafone Idea
Goldman Sachs has also projected an additional share loss of 300 basis points for Vodafone Idea over the next three to four years. This forecast is based on the recent capital raised by the telecom company. The investment firm's Manish Adukia highlighted that "Vodafone Idea has large AGR/spectrum-related payments starting in FY26," adding that achieving sustainable free cash flow neutrality seems unlikely in the medium term.
Vodafone Idea's capital raise and future financial challenges
Vodafone Idea recently secured ₹20,100 crore in equity through a follow-on public offer and capital injection from promoters. The company also intends to raise an additional ₹25,000 crore in debt. Despite these efforts, Goldman Sachs suggests that for Vodafone Idea to reach free cash flow neutrality by FY27, its Average Revenue Per User (ARPU) would need to surge by 2.2-2.5 times the levels recorded in December 2024.
