Vodafone Idea clarifies on $6 billion investment report; shares surge 9% on SC relief hopes

Vodafone Idea Ltd (Vi) on Monday denied a media report claiming that US-based private equity giant TGH was in talks to invest up to $6 billion in the company. In a clarification to the stock exchanges, the telecom operator said no such proposal was currently under consideration by its Board of Directors.

"The Company keeps exploring various opportunities and options to raise funds within the authorisations given by the Board. As and when such proposals are considered by the Board that warrant disclosures, the Company complies with the disclosure obligations under Sebi (Listing Obligations and Disclosure Requirements)," Voda Idea said in its filing.

It added, "Currently, there is no proposal being considered by the Board that requires disclosure as reported by the media. We wish to reiterate and clarify that the Company will comply with SEBI Listing Regulations and duly keep the stock exchanges informed of all the price-sensitive information."

Despite the clarification denying any investment talks, shares of Vodafone Idea jumped 9.28 per cent to close at Rs 9.54 on BSE. The sharp upmove came after a news report indicated that the Supreme Court had issued a clarification on the long-standing issue of adjusted gross revenue (AGR) dues for the telco.

According to CNBC-TV18, the top court clarified that the government is free to consider granting relief to Vodafone Idea on both additional AGR dues as well as reassessment of pending dues.

Commenting on the market reaction, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The Supreme Court clarification is a positive trigger for Voda Idea's stock. However, the company's operational metrics, such as ARPU (average revenue per user) and subscriber growth, remain crucial before any serious investment consideration. The stock suits only investors with a high-risk appetite."

On the technical front, Vaishali Parekh, Vice-President of Technical Research at Prabhudas Lilladher, advised aggressive traders to maintain a strict stop loss at Rs 8, noting that only a sustained move above Rs 11 could open the door for higher targets ahead.