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Vodafone Idea share rises 10%, here's why

BusinessToday.In     November 20, 2020

Vodafone Idea share price rose almost 10% in Friday's early trade after the telecom major announced that it has sold its 11.15% stake in Indus Towers for Rs 3,760 crore.

As per the filing on November 19, the merger of Indus and Infratel "has been completed", and the telecom operator Vi (Vodafone Idea) has received cash consideration of Rs 3,760.1 crore for its 11.15% shareholding in Indus.

Following the updates, Vodafone Idea stock opened at Rs 9.60 and touched an intraday high of Rs 10.13, rising 9.2% against the previous close of Rs 9.27 on BSE. Stock price of Vodafone Idea also hit a low of Rs 9.50 intraday.

Vodafone Idea stock is trading higher than 5, 20, 50, 100, and 200-day moving averages. Stock price of Vodafone Idea has risen 10% in one week, 10% in one month, and 56% since the beginning of the year.

Market capitalisation of the firm stood at Rs 27,758 crore as of today's closing session.

"The Board has allotted 757,821,804 equity shares of Rs 10 each to the Vodafone group and 87,506,900 equity shares of Rs 10 each to PS Asia Holding Investments (Mauritius) Limited (Providence) aggregating to 28.12 percent and 3.25 percent respectively in the post-issue share capital of the company," Bharti Infratel said in the filing.

Meanwhile, Vodafone Idea Ltd is reportedly in talks to raise at least $2 billion from a consortium of investors, including Oaktree Capital Management and Varde Partners.

The board of Vodafone Idea had in September approved raising up to Rs 25,000 crore via one or more tranches, via issuance of Global Depository Receipts (GDRs), American Depository Receipts (ADRs), foreign currency convertible bonds (FCCBs), convertible debentures and warrants.

In the pending AGR dues matter, the Supreme Court has given telecom companies 10 years to clear their dues in annual installments, starting from April 2021.

Vodafone Idea stock price closed 7.87% higher at Rs 10 on BSE.

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