Vodafone share price rallied almost 15% on Thursday after Vodafone Plc announced that it was making an advance payment of $200 million to its India JV with Aditya Birla Group-Vodafone Idea, which was earlier due on September 2020.
The parent firm said in a statement that it has accelerated the payment to tide over any liquidity crisis arising out of the coronavirus outbreak.
Following the update, shares of Vodafone Idea climbed 14.9% higher to Rs 4.55 on BSE as against the last closing value of Rs 3.96.
Vodafone shares have risen 14.66% in the last two sessions. Vodafone shares trade higher than 5, 20 and 50-day moving averages but lower than 100 and 200-day moving averages. The stock has risen 4% in one week and over 40% in one month.
Vodafone Group, in a statement, said it has "accelerated this payment to provide Vodafone Idea with liquidity to manage its operations, and to support the approximately 300 million Indian citizens who are Vodafone Idea customers as well as the thousands of Vodafone Idea employees during this phase of emergency health measures, taken as a result of the COVID-19 pandemic."
"Vodafone Group announces that it has accelerated payment of USD200 million to Vodafone Idea, which was due in September 2020 under the terms of the contingent liability mechanism with Vodafone Idea," the statement added.