Surging for the fourth straight session, the shares on Vodafone Idea (Vi) have touched around two and a half years high on Monday, after gaining 10 per cent to Rs 15.88 per share level for the first time since May 2019 on the BSE intraday trade on Monday.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The stock has been surging on the multiple triggers, and the company has got a breather since the time government announced moratorium for AGR (adjusted gross revenue) dues that are to be paid to the department of telecommunication, which falls under Ministry of Information and Telecom.  

See Zee Business Live TV Streaming Below:

The company in the last week of November had also announced a tariff hike by 20-25 per cent immediately after Bharti Airtel taking price hike. This has also impacted in the stock price surge as the counter in the last month has jumped over 61 per cent from Rs 9.82 per share level on the BSE.  

Besides, the assurance from the global brokerage firm Goldman Sachs that the telecom sector looks good and also restored faith in the cash-strapped company’s shares. It believes, recent price hikes will result in annual FCF (free cash flow) rise of $ 1 billion for the telecom companies.   

The company in its investor presentation has outlaid that it has 1768MHz spectrum holding, at around 184000 unique locations, besides, it also has around 450,500 broadband sites with nearly 285500 km fibre connections.  

As per September market share in total active wireless subscriber base, the company has 23.7 per cent share, as compared to 34.8 and 35.7 per cent of Bharti Airtel and Reliance Jio, the other two key private players in the telecom sector. 

At around 02:43 pm, the scrip is trading over 7 per cent higher to Rs 15.46 per share as compared to 1.21 per cent decline in the S&P BSE Sensex during the same period.