In Short
- Vodafone Idea, the third-largest telecom firm, rose as much as 14.75% in early trade.
- The increase came after media had circulated information that the AGR dues might be waived.
- Recently, the shares of Vodafone Idea have risen to 35.14% in the last one month.
Stock Surge
In the early trading session on Monday, Vodafone Idea’s stock price surged to its day’s high of Rs 10.48, thereby showing almost 15% increase. At the time of writing, the stock was at Rs 10, which 9.65% higher than the previous close with a market capitalization of Rs69,839.22 crore.
AGR Dues Waiver Reports
This article also connected the Vodafone Idea stock increase to media talks of the government’s proposal to erase 50% interest and 100% of penalties on the AGR dues. The varieties of these dues include, Vodafone Idea and Bharti Airtel telecom companies were directed to pay these amounts based on a Supreme Court order in 2019.
Stock Comparison
The stock of Vodafone Idea was at Rs 9.12 in the previous trading session and available at Rs 10.03 in the early Monday morning. The stock is still trading much lower than its 52-Week high of Rs. 19.15 which it achieved on the 28 th of June, 2024. It has touched the lowest 52-week low of Rs 6.60 on November 22, 2024.
Some Relief for Telecom Industry
Thus, the approach of complete elimination of AGR dues may indeed help the beleaguered telecom sector, in case it is put into practice. Newspaper and television also suggest that the government may unveil the relief in the budget session, which will be the second since September last year.
Analyst Views
JM Financial Institutional Securities Limited has kept a ‘SELL’ on Idea and ‘HOLD’ on Indus saying that Idea is not commercially viable except for massive state aid. Telecom firms shot themselves in their mouths when they decided not to go for bankruptcy as the Supreme Court dismissed the AGR curative petition in September 2024, and that shut the last legal door for them. Relief from AGR dues would be very positive for Vodafone Idea and Indus mobile and, to a certain extent, for Bharti Airtel and no impact for Jio,.
Recent Stock Performance
Its stock has risen by 35.14% in the last one month and plunged by 37.07% in the last six months.
Also Read: Reliance Power Experiences Positive Trading Surge Today: Live Share Price Updates
+ There are no comments
Add yours