Penny Stock: Shares climbed over 20 per cent as the government became the largest shareholder in the company!

The telecom company also led the gains in the BSE Mid-cap index!

Following the global market downturn, Indian headline indices ended the session lower as well. The BSE Sensex declined 0.55 per cent to 60,506 level at the close. The Nifty 50 index fell 0.50 per cent to a level of 17,764. Broader indices, on the other hand, outperformed main indices by a significant margin.  

The majority of sectors were trading lower, with metals, utility and power stocks suffering the most. In contrast, BSE Telecommunication, led by Vodafone Idea Ltd, was the best-performing sector, with gains of over 3 per cent in such a weak market. The telecom company, Vodafone India also led the gains in the BSE Mid-Cap index.  

The Centre approved the conversion of Rs 16,133 crore in dues related to spectrum interest and adjusted gross revenue (AGR) of the telecom business into equity. The government will own a significant 33 per cent of the company, making it the largest shareholder in the financially struggling company.  

Following relief from the government, shares of Vodafone Idea Ltd soared and touched an intraday high of Rs 8.57 per share on the BSE, representing about 25 per cent gain. With a significant surge in volume, shares ended the session 20 per cent higher.  

Keep a close eye on this scrip for the upcoming sessions!