Vodafone Idea Share Price jumps 12% amid heavy volumes as Care Ratings upgrades outlook to stable
The stock has been buzzing since Tuesday as the government announced the 5G rollout plan and production-incentive scheme for the telecom sector, while the Care Ratings upgrade on Vis long-term bank facilities and non-convertible debentures (NCD) has added more fuel to the stocks rally.
Vodafone Idea (Vi) share price surged by almost 12 per cent to touch the day’s high level of Rs 11.95 per share on the BSE intraday on Wednesday. The stock surged on the back of heavy volumes amid multiple triggers, including ‘stable’ outlook rating upgrades from Care Ratings (CARE).
The stock has been buzzing since Tuesday as the government announced the 5G rollout plan and production-incentive scheme for the telecom sector, while the Care Ratings upgrade on Vi’s long-term bank facilities and non-convertible debentures (NCD) has added more fuel to the stock’s rally.
See Zee Business Live TV Streaming Below:
At around 02:47 pm, the counter is trading almost 7 per cent higher to Rs 11.43 per share on the BSE as compared to a 1.2 per cent rise in the S&P BSE Sensex. A combined 198 million shares changed hands at the counter on the NSE and BSE during the early morning trade.
According to Care Ratings, “The revision in the ratings assigned to the bank facilities and instruments of Vodafone Idea Limited (VIL) follows an improvement in the industry dynamics post telecom reforms announced by the Government of India (GoI), which addressed the liquidity woes of the sector to a large extent, including that of Vodafone Idea.”
Followed by tariff hikes across telecommunications service providers (TSPs), raising average revenue per user (ARPU) for the industry at large, VIL’s on-time repayment of large NCD obligations in H2FY22 is the credit positives, the rating agency said while upgrading the outlook to stable.
After the telecom reforms, CARE Ratings expects the fund-raising activities to pick up the pace at VIL’s level, based on articulation by the management, including partial funding support from the existing promoters soon, the rating agency said.
The counter has so far corrected 36 per cent from its 52-week high of Rs 16.79 per share touched on December 10, 2021, till Tuesday. The company on January 10, 2022, had approved the conversion of the full amount of interest related to spectrum auction installments and AGR dues into equity.
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.