Vodafone Idea shares surged nearly 9 percent Monday to scale a fresh 52-week high amid the reports that the Department of Telecom (DoT) has released Vodafone Idea's bank guarantees (BGs) to the tune of Rs 12,000 crore.
The Bombay Stock Exchange (BSE) on Friday sought a clarification from the beleaguered telco. Replying, Vi said, the news item is "factually incorrect". In the telecom reforms package announced by the government on September 15, one of the measures was the rationalisation of bank guarantees.
The government had reduced BG requirements against license fees and other similar levies. It had said there are no requirements for multiple BGs in different licensed service areas regions of the country and that one BG would be enough. A licensed service area is a geographic region in which telcos can provide services.
Regardless, the stock surged to Rs 15.88—an intraday and 52-week high—a level last seen in April 2019. In the past five trading sessions, the stock has surged nearly 40 percent and over nearly 60 percent in the past month. The stock has outperformed the S&P BSE Sensex benchmark, which has declined over 6 percent in the last month.
Meanwhile, the telecom companies' trade volume (on both exchanges combined) surged to 189 crores. It is higher than Friday's volumes of 138 crore when the shares were up 12 percent. It is also higher than the weekly average (98 crore) and monthly average (49 crore).
Vodafone Idea's share price has been going through the roof ever since the company increased prepaid tariffs by 20-25 percent. The increase came into effect on November 25.
The reports of the telecom department returning bank guarantees had also sent the stock surging last Friday. The stock had risen over 12 percent in the last hour of trading.
First Published: Dec 6, 2021 4:25 PM IST
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