Vodafone Idea shares hit new 52-week high; rally 19% from day’s low ahead of fundraising board meet

Voda-Idea share price rallied nearly 19 per cent to hit a fresh 52-week high of Rs 13.45 apiece from day’s low on BSE

Vodafone Idea share price rallied nearly 19 per cent to hit a fresh 52-week high of Rs 13.45 apiece from day’s low on BSE ahead of company’s board meeting to consider fundraising in one or more tranches by way of a public issue, preferential allotment, private placement, including a qualified institutions placement or through any other permissible mode. In today’s session, Vodafone Idea stock is constantly gyrating between gains and losses. The stock slipped into the red, minutes after scaling a fresh 52-week high. “With the Supreme court giving a 10-year timeline to pay the dues, it has given a new life to Vodafone Idea. Also, there is talk about the company speaking with investors to raise US$1.5bn and this is further adding momentum in the stock,” Arjun Yash Mahajan, Head – Institutional Business at Reliance Securities, told Financial Express Online.

“Finally, the prospects of the Indian telecom sector being a duopoly have gone out of the window for now and this market will see competition between Reliance Jio, Bharti Airtel and Vodafone Idea, which is good for the end customer,” Mahajan added. Earlier this week, the stock crashed 20 per cent in intraday deals post Supreme Court verdict on adjusted gross revenue (AGR) dues payment timeline and ended 13 per cent lower. Since then the stock has recovered over 51 per cent rising from Rs 8.89 to Rs 13.45 per share.

Yesterday, the stock gained on the back of the media reports which suggested retailer Amazon and Verizon may invest more than $4 billion (more than half of the pending AGR dues) for a stake in the company. Vodafone Idea clarified in an exchange filing on Thursday saying that as part of corporate strategy, the company constantly evaluates various opportunities for enhancing the stakeholders’ value. “As and when such proposals are considered by the Board of Directors of the company warranting disclosures, the company shall comply with the disclosure obligations under the SEBI. Currently, there is no proposal as reported by the media that is being considered at the Board,” Vodafone Idea said in an exchange filing.

Around 10.45 AM, Vodafone Idea shares again turned positive and were trading 0.40 per cent up at Rs 12.61 apiece, as compared to a 1.21 per cent fall in the benchmark S&P BSE Sensex. In a separate development, Vodafone Idea has informed that the company’s 25th Annual General Meeting (AGM) will be held on September 30, 2020 through video conference / other audio-visual means (OAVM).