Vodafone Idea share rose 13% in early trade today after the telco said its board would hold a meeting on September 4 to finalise plan to raise funds. Bharti Airtel and Vodafone Idea are likely to hike tariffs for voice and data services after the Supreme Court asked telcos to pay 10 percent of their AGR dues within the next seven months. This also led to positive sentiment around the stock.
Share price of Vodafone Idea gained up to 13.6% to Rs 10.10 against previous close of Rs 8.89 on BSE.
Vodafone Idea share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Total 743.21 lakh shares changed hands amounting to turnover of Rs 72.15 crore on BSE. Market cap of the firm climbed to Rs 27,499 crore.
The announcement to hold board meeting came on September 1 when Supreme Court granted 10 years to telcos to pay AGR dues.
Vodafone Idea still owes more than Rs 50,000 crore to the government in AGR dues.
In a communication to BSE, the telco said, "The meeting of the Board of Directors of the Company is scheduled on 04/09/2020 ,inter alia, to consider and approve inter-alia, to consider and evaluate any and all proposals for raising of funds in one or more tranches.
The funds will be raised by way of a public issue, preferential allotment, private placement, including a qualified institutions placement or through any other permissible mode and/or combination thereof as may be considered appropriate, by way of issue of equity shares or by way of issue of any instruments or securities including securities convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, and/or non-convertible debentures including non-convertible debentures along with warrants, which may or may not be listed."