Shares of Vodafone Idea soared 14.48 per cent to Rs 8.30 on the BSE on Tuesday amid heavy volumes in an otherwise subdued market. Since August 31, Vodafone Idea has gained over 35 per cent as the telecom company said it is hopeful that the government will provide the necessary support to address all structural issues faced by the sector. Other telecom stocks – Bharti Airtel and Reliance (Jio) – where also in the green.
As part of providing relief to the telecom sector, the Union government would likely encourage companies to monetise their assets, via InvIT and REIT instruments, to international investors by backing them up with sovereign assurance.
The stock had hit a 52-week low of Rs 4.55 on August 8, 2021, after the Supreme Court rejected the modification application filed by the company and other operators, requesting to allow the DoT to correct manifest/clerical/arithmetic errors in the computation of adjusted gross revenue (AGR) demands. Subsequently, on August 10, the company filed a review petition against the order dated July 23, which is pending outcome.
As the industry continues to remain under unsustainable financial duress, the company is hopeful that the government will provide the necessary support to address all structural issues faced by the sector. Therefore, while the company awaits the government’s decision, it will continue to remain focused on providing quality service to the customers, Vi said.