Vodafone Idea Shares Jump 23%, 52-Week High, After Getting Time To Repay ATC
Telecom company Vodafone Idea’s shares continued to rise for the fifth day in a row on Monday. The stock has gained 22.75% in the past five days.
On this day, the stock surged by 6.79% to reach a high of ₹9.28 from its previous close of ₹8.69.
6.72 crore shares of shares were traded which is higher than the usual average of 4.12 crore shares. The total value of shares traded was ₹59.95 crore, giving the company a market capitalization of ₹44,201.16 crore.
The sharp rise in the stock price happened because Vodafone Idea extended the time for redeeming a type of debt instrument known as “optionally convertible debentures.”
These are like loans that can be turned into shares later. The redemption period was extended from 6 months to 18 months.
This happened after discussions with investors about getting more money for the company, which is facing financial challenges.
The VIL CEO mentioned that discussions with investors are going well and are expected to conclude in the next quarter.
The company also plans to pay off around ₹2,400 crore of dues to the government by September. Recently, it paid off some pending dues for the previous quarter.
Separately, the company made an agreement with another company called Route Mobile for providing certain SMS services.
The company’s stock price is trading higher than various average price levels, which is seen as a positive sign. However, some analysts have a target price for the stock that suggests a potential decrease in its value.
The stock’s price movement is also being monitored using technical indicators, and the current level suggests that the stock might be overbought.
Vodafone Idea had recently gained attention due to its plan to issue a certain type of debt instrument to raise money. These instruments allow the company to borrow money and pay interest to investors until a certain time.
The management of the company is actively working on raising funds and expects services to improve in the coming months.