Vodafone Idea shares jump 23% in 5 straight sessions; here's why
Vodafone Idea share price: Today' sharp up move came after VIL said it has extended the redemption period of 8,000 optionally convertible debentures (OCDs) – out of the 16,000 OCDs issued to American Tower Corp's India unit (ATC Telecom Infrastructure Pvt Ltd) – to 18 months from the allotment date, instead of the previous 6-month deadline.
- Aug 28, 2023,
- Updated Aug 28, 2023 1:26 PM IST
Shares of telecom operator Vodafone Idea Ltd (VIL) continued to rise for the fifth straight session in Monday's deals. The stock of debt-ridden company has gained 22.75 per cent in five days. The scrip today surged 6.79 per cent to hit a day high of Rs 9.28 against its previous close of Rs 8.69. Around 6.72 crore shares changed hands today, higher than the two-week average volume of 4.12 crore shares. Turnover on the counter stood at Rs 59.95 crore, commanding a market capitalisation (m-cap) of Rs 44,201.16 crore.
Today' sharp up move came after VIL said it has extended the redemption period of 8,000 optionally convertible debentures (OCDs) – out of the 16,000 OCDs issued to American Tower Corp's India unit (ATC Telecom Infrastructure Pvt Ltd) – to 18 months from the allotment date, instead of the previous 6-month deadline.
"The company had informed the stock exchanges about issue and allotment of captioned OCDs to ATC, post approval of shareholders in general meeting. We wish to inform you that, the company and ATC have agreed to extend the period of redemption of 8000 OCDs from 6 months, from the date of allotment of first tranche of OCDs (which was falling due on 28th August, 2023), to 18 months from the date of allotment, subject to certain conditions as mutually agreed," VIL stated in an exchange filing.
Prior to this, VIL chief executive Akshaya Moondra, in an earnings call said, "In the last 2 months, our discussions with multiple groups of investors on both equity and equity-linked instruments has progressed. It has gained a lot of momentum, and we have seen a very good progress in the last couple of months, particularly in the last 1 month where some of these discussions have started progressing to a level of due diligence or proposals being discussed with these investors. We are making good progress, and we expect to conclude these discussions in the coming quarter."
The CEO also mentioned, "We already disclosed that the promoters have already given support for Rs 2,000 crore of equity, some external equity needs to be tied up. And with that, the bank funding will also be tied up. So, we expect to conclude all these funding arrangement in the coming quarters. And once that happens, then we will be able to continue our investments."
In addition, the company reportedly said the it plans to clear about Rs 2,400 crore of dues to the government by September. The telco recently cleared pending dues of licence fees and spectrum usage charges of about Rs 450 crore for the March quarter of 2022-23.
Separately, the firm has signed a binding term sheet with Route Mobile (UK), wholly-owned subsidiary of Route Mobile, for VIL's International A2P SMS traffic. Route Mobile would be VIL's platform provider for International A2P SMS Services for a period of 24 months, it mentioned.
On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 70.73. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 1.42 against a negative price-to-book (P/B) value of 0.56.
The scrip has an analyst target price of Rs 6, Trendlyne data showed, suggesting a potential downside of 39 per cent. It has a one-year beta of 0.84, indicating low volatility on the counter.
Meanwhile, Indian equity benchmarks were trading higher today, led by gains in automobile, state-owned banks, metal and pharma stocks.
Shares of telecom operator Vodafone Idea Ltd (VIL) continued to rise for the fifth straight session in Monday's deals. The stock of debt-ridden company has gained 22.75 per cent in five days. The scrip today surged 6.79 per cent to hit a day high of Rs 9.28 against its previous close of Rs 8.69. Around 6.72 crore shares changed hands today, higher than the two-week average volume of 4.12 crore shares. Turnover on the counter stood at Rs 59.95 crore, commanding a market capitalisation (m-cap) of Rs 44,201.16 crore.
Today' sharp up move came after VIL said it has extended the redemption period of 8,000 optionally convertible debentures (OCDs) – out of the 16,000 OCDs issued to American Tower Corp's India unit (ATC Telecom Infrastructure Pvt Ltd) – to 18 months from the allotment date, instead of the previous 6-month deadline.
"The company had informed the stock exchanges about issue and allotment of captioned OCDs to ATC, post approval of shareholders in general meeting. We wish to inform you that, the company and ATC have agreed to extend the period of redemption of 8000 OCDs from 6 months, from the date of allotment of first tranche of OCDs (which was falling due on 28th August, 2023), to 18 months from the date of allotment, subject to certain conditions as mutually agreed," VIL stated in an exchange filing.
Prior to this, VIL chief executive Akshaya Moondra, in an earnings call said, "In the last 2 months, our discussions with multiple groups of investors on both equity and equity-linked instruments has progressed. It has gained a lot of momentum, and we have seen a very good progress in the last couple of months, particularly in the last 1 month where some of these discussions have started progressing to a level of due diligence or proposals being discussed with these investors. We are making good progress, and we expect to conclude these discussions in the coming quarter."
The CEO also mentioned, "We already disclosed that the promoters have already given support for Rs 2,000 crore of equity, some external equity needs to be tied up. And with that, the bank funding will also be tied up. So, we expect to conclude all these funding arrangement in the coming quarters. And once that happens, then we will be able to continue our investments."
In addition, the company reportedly said the it plans to clear about Rs 2,400 crore of dues to the government by September. The telco recently cleared pending dues of licence fees and spectrum usage charges of about Rs 450 crore for the March quarter of 2022-23.
Separately, the firm has signed a binding term sheet with Route Mobile (UK), wholly-owned subsidiary of Route Mobile, for VIL's International A2P SMS traffic. Route Mobile would be VIL's platform provider for International A2P SMS Services for a period of 24 months, it mentioned.
On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 70.73. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 1.42 against a negative price-to-book (P/B) value of 0.56.
The scrip has an analyst target price of Rs 6, Trendlyne data showed, suggesting a potential downside of 39 per cent. It has a one-year beta of 0.84, indicating low volatility on the counter.
Meanwhile, Indian equity benchmarks were trading higher today, led by gains in automobile, state-owned banks, metal and pharma stocks.