Vodafone Idea Stocks Soar 23% Amidst Buzz Of Equity Infusion

Vodafone Idea Share News Update: On the final trading day of the year, Vodafone Idea shares hit a new 52-week peak, surging nearly 23% on December 29. The telecommunications company’s stock soared by 22.6% to reach Rs 16.25 on the NSE. By 3 pm, the shares were still trading close to the day’s peak, standing at Rs 16.10 per share.

According to reports, the rise in the stock price is attributed to a rumored equity injection by the promoters of the beleaguered telecom company.

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Over the last six months, Vodafone Idea shares have more than doubled investors’ wealth, marking a substantial gain of 116.78 percent. In contrast, the Nifty 50, a key benchmark index, has seen a rise of 13.28 percent during the same timeframe.

On December 29, the trading volume for Vodafone Idea was notably elevated at 175 crore shares, surpassing both the one-week average of 26 crore shares and the monthly average of 33 crore shares.

According to a report by Moneycontrol, sources familiar with the ongoing negotiations informed that the unbridled rally in the share price of Vi over the last six months has impeded the eagerly awaited fund infusion into the financially challenged telecom firm.

Although the company had initially set December as the deadline for the fund infusion in recent filings, the surge in stock prices has temporarily disrupted ongoing discussions, as per the sources. The source added, “Ironically, the current surge in the company’s shares is fueled by expectations of fundraising.”

In the quarter ending September, Vodafone Idea reported an expanded loss of Rs 8,737.9 crore, compared to Rs 7,595.5 crore in the corresponding quarter of the previous year. The company disclosed in an exchange filing that its revenue from operations reached Rs 10,716.3 crore, reflecting a 0.95 percent increase from Rs 10,614.6 crore in the same quarter.

As per a CNBC-TV18 report, even with the 85% surge in 2023, none of the analysts covering Vodafone Idea have issued a “buy” recommendation for the stock. Out of the 15 analysts, 13 have assigned a “sell” rating, and the remaining two hold a “neutral” view.