Vodafone Idea shares rose 9.98 percent to hit a high of Rs 8.48 on BSE. Later, the stock was trading at Rs 8.15, up 5.71 percent. The scrip has climbed 15 percent in the last month.
Shares of Vodafone Idea jumped 10 percent in Wednesday’s trade amid a media report suggesting the company has proposed to infuse total equity of Rs 14,000 crore in the near term as part of its business revival plan. This will see existing promoters Aditya Birla Group (ABG) and UK’s Vodafone Group Plc infuse half the overall amount, an ET report suggested, citing people with knowledge of ongoing discussions.
Vodafone Idea shares rose 9.98 percent to hit a high of Rs 8.48 on BSE. Later, the stock was trading at Rs 8.15, up 5.71 percent. The scrip has climbed 15 percent in the last month.
As per the report, the plan is submitted to the government earlier this month and ABG and Vodafone Group will soon invest Rs 2,000 crore as fresh equity in the company. The report noted that promoters have already invested Rs 5,000 crore as fresh equity since the government’s telecom revival package in September 2021.
The ET report said the promoters will work with the company as part of the revival plan to raise another Rs 7,000 crore either as direct equity or through convertible structures from external investors.
To recall, Kumar Mangalama Birla, the chairperson of Aditya Birla Group, returned to the board of Vodafone Idea as an additional director (non-executive and non-independent) with effect from April 20. The move turned sentiment positive around the telecom stock.
Data showed mutual funds upped holding in Vodafone Idea to 28.64 crore shares in May from 20.48 crore shares a month ago. Mutual fund managers managed Rs 206 crore worth of Vodafone Idea shares as on May 31 against Rs 142 crore as on April 30.
