Following a block deal valued at Rs 234 crore, Vodafone Idea shares have gone up by 3%. The Indian telecommunications market competition has been harsh on the telecom company for the last few years. It is owned by Aditya Birla Group and Vodafone Group through a joint venture and it has had to struggle with huge debts.
Vodafone Idea on its part has grappled with these challenges. Costs have been slashed as a result of reducing staff positions, asset sales, raising funds from different sources among other measures. This recent block deal is seen as being positive for the business as potential buyers are still showing some kind of interest in purchasing their shares.
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Vodafone Idea share price: Voda Idea’s stock rises 2.67%
According to Business Today, the share price of Vodafone Idea rose 2.67% on Monday to hit a high of Rs 12.71 from its previous close of Rs 12.38. Its counter recorded a turnover of Rs 272.73 crore, with a market cap (m-cap) of Rs 83,702.67 crore.
The positive effect on stock was caused by a block deal where according to BSE data,19,04,25,000 shares valued at Rs 233 crore were sold. The purchasers and sellers are not yet disclosed
Nuvama Institutional Equities raised that management at VodaIdea were optimistic about the growth prospects after the recent successful follow-on public offer (FPO).The domestic brokerage said that for Voda Idea to survive three things must happen – capital infusion, liabilities waiver and tariff hikes.One out of two is achieved so far by the company after it succeeded in capital raise recently.According to Nuvama upgradation capex spending is expected by Voda Idea to be similar to what its peers did over the past three years.
Over the next six-nine months, this telecommunication firm plans rolling out its 5G services in selected regions.Voda Idea CEO Akshaya Moondra stated that within next 24-30 month period if it goes ahead as planned then almost half of our revenue will come from 5G rollout.
It is vital to understand that this article gives stock market news for information purposes only and not as an investment advice. Readers are urged to seek advice from a qualified financial advisor before making any investment decisions.
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