Vodafone Idea soars 15%, hits fresh 52-week high; stock up 64% in 3-weeks
Shares of Vodafone Idea (Vi) hit a fresh 52-week high of Rs 16.40, on surging 15 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes after the media report suggest that the company managed to raise funds for repayment of interest to bondholders on time.
The stock of telecom service provider was trading at its highest level since May 7, 2019. It surpassed previous high of Rs 15.88 hit on December 6, 2021. At 10:29 am; Vi was trading 13 per cent higher at Rs 16.18, as compared to 0.46 per cent decline in the S&P BSE Sensex. A combined 705 million equity shares had changed hands on the NSE and BSE so far.
Bondholders of Vodafone Idea will receive their interest in time on the due date of December 13 as the company managed to raise funds for the repayment, the Business Standard reported quoting bankers.
The company has to pay Rs 6,000 crore to its bondholders beginning December 13 till March next year and plans to use its own cash flows and bank funds to repay its bond holders, the report suggested.
In past three weeks, the stock price of Vi has zoomed 64 per cent after the company increased its prepaid tariff by 20-25 per cent from November 25, 2021. The company said the new plans will start the process of average revenue per unit (ARPU) improvement and help address the financial stress faced by the industry.
Meanwhile, Aditya Birla Group Chairman Kumar Mangalam Birla on Wednesday said that the government has made policy interventions to boost the telecom sector and further measures in ease of doing business as well as support from the banking sector will enhance the industry's strength and ensure that India remains at the cutting-edge of global technology trends.
Aditya Birla Group holds over 27 per cent stake in Vi, while Vodafone Plc has more than 44 per cent in the telecom operator.
"Over the past few months, the government has made some critical policy interventions in this direction. Further steps in ease of doing business and support from the banking sector will significantly enhance the sector strength and ensure that India remains at the cutting edge of global technology trends," said Birla, the news agency PTI reported.