Vodafone Idea share price spurts 25% as govt grants nod to convert over Rs 16,000 crore dues into equity
Vodafone Idea Share Price: Vodafone Idea shares are in focus as the government has granted nod to convert over Rs 16,000 crore dues into equity. The government will have 33 per cent stake in the company.
Vodafone Idea Share Price, Idea Share Price News: Shares of Vodafone Idea (Vi) were locked in the 25 per cent upper circuit at Rs 8.50 on the NSE on Monday at 1 PM. The development follows the government's decision to convert the company's dues worth Rs 16,133 crore into equity. With this, the government will have a 33 per cent stake in the telecom services provider. Around 9.47 crore equity shares of Vodafone Idea have exchanged hands, according to NSE data. The stock had hit a record low of Rs 6.33 on January 27.
Ravi Singh, Vice-President and Head of Research at Share India, said that the government's decision to convert the company's accrued interest worth Rs 16,133 crore into equity may give a momentary pull back but it may not sustain for long.
"Investors are advised to stay away from this stock and existing investors may take this opportunity to exit their holdings," he said.
Zee Business panellist and market expert Rakesh Bansal said that Rs 7.50 was a critical level for the stock. After today's gap-up, the next level to watch in Idea is Rs 8 which will act as a big resistance.Last week, the government approved the conversion of over Rs 16,133 crore interest dues of debt-ridden Vodafone Idea into equity, the company said in a regulatory filing. Equity shares of face value of Rs 10 each will be issued to the government at the same price.
Click Here For Latest Updates On Stock Market | Zee Business Live
The decision is seen as a relief for the company and comes as part of the reforms package announced by the government in September 2021."The total amount to be converted into equity shares is Rs 16133,18,48,990. The company has been directed to issue 1613,31,84,899 equity shares of the face value of Rs 10 each at an issue price of Rs 10 each," Vodafone Idea said in the filing.
Also, read- India's economy already 10% more energy efficient than G20 average: IEA
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.