President of India-Backed Telecom Stock Under Rs 15 Locked In 10 Per Cent Upper Circuit On January 20; Here’s Why
The company has a market capitalization of over Rs 69,000 crore with the world’s largest outstanding shares of 69,69,98,16,640 shares.
On Monday, one of the Top Gainers on BSE & NSE, shares of this telecom service provider, locked in a 10 per cent upper circuit to Rs 10.03 per share from its previous closing of Rs 9.12 per share. The stock’s 52-week high is Rs 19.15 and its 52-week low is Rs 6.60 per share.
The trending telecom stock is Vodafone Idea Ltd
The Indian government is considering a significant relief measure for the struggling telecom sector. This could involve waiving a substantial portion of the adjusted gross revenue (AGR) dues owed by companies like Vodafone Idea. This move is expected to boost the stock prices of these companies significantly.
Specifically, the government is reportedly considering waiving 50 per cent of the interest and 100 per cent of the penalties associated with AGR dues, while the principal amount remains unchanged. This could provide Vodafone Idea with a relief of around Rs 52,000 crore, reducing a significant portion of its debt burden.
This potential relief comes at a crucial time for Vodafone Idea, facing severe financial challenges due to its massive AGR liabilities. It could help the company raise the necessary funds to manage its debt and ensure its long-term viability. While the government has not yet finalized the details of the relief package, there is growing optimism within the telecom sector that this move will provide much-needed support to struggling players.
Earlier, UK-based Vodafone Group recently repaid approximately Rs 11,650 crore in debt, leading to the release of pledges on nearly its entire stake in Vodafone Idea (VIL). This debt was secured against VIL shares to facilitate funding raised by Vodafone Group entities. The repayment was made to lenders, with HSBC Corporate Trustee Company (UK) Limited acting as the security trustee. This release of pledges on a substantial portion of VIL's equity shares signifies a significant step for Vodafone Group in its financial restructuring.
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About Vodafone Idea Ltd
Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is amongst India’s leading telecom service providers. The company provides pan India Voice and Data services across 2G, 3G and 4G platforms. The company holds a large spectrum portfolio including mid-band 5G spectrum in 17 circles and mm-Wave 5G spectrum in 16 circles. To support the growing demand for data and voice, the Company is committed to delivering delightful customer experiences and contributing towards creating a truly ‘Digital India’ by enabling millions of citizens to connect and build a better tomorrow.
The Company is developing infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future-ready with innovative offerings, conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence. The Company’s equity shares are listed on the National Stock Exchange (NSE) and the BSE in India.
The company has a market capitalization of over Rs 69,000 crore with the world’s largest outstanding shares of 69,69,98,16,640 shares. The company's majority of stake i.e., 23.15 per cent, is owned by the Government of India (Department of Investment and Public Asset Management).
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Disclaimer: The article is for informational purposes only and not investment advice.