Vodafone Idea share price surges after correcting nearly 45%; stock recovers by 55% from 52-week low

A day after clarification from Vodafone Idea (Vi), the shares of the telecom company jumped over 18 per cent to Rs 7.04 per share on the BSE intraday trade on Friday, breaking the decline chain since earlier this week. The stock this week alone has declined by around 45 per cent.

The exchanges had sought a clarification from Vi related to the media report that the promoter Kumar Mangalam Birla giving up his stake in the company to BSNL and lenders of the company.

In this regard, the telecom company submitting its response, said that “the media report relates to one of the promoters and the Company Vodafone Idea Limited is not aware of any such offer as is alleged in the said news item. We, therefore, cannot comment on the report.”

Recovering its losses, the stock till yesterday was registering fresh lows almost every day since Tuesday, amid multiple developments, related to the company.

First, the Supreme Court rejecting their AGR dues recomputing pleas, then Kumar Mangalam Birla stepping down from Chairman’s position and lately, Vodafone Group Plc denying any more fund infusion in the Indian joint subsidiary.

The stock has recovered around 55 per cent from its fresh low of Rs 4.55 per share that was touched on Thursday amid the chairman’s resignation news. It has been a volume buzzer with 43,041,038 shares changed hands on BSE today.

The VIL debt has more than trebled in the last four years to Rs 1.6 lakh crore as of the end of March 2021, from around Rs 37,000 crore in FY16, which includes deferred spectrum obligations and adjusted gross revenue (AGR) liabilities.

The counter around 11:56 am, was trading around 15 per cent higher to Rs 6.82 per share on the BSE, as against a 0.24 per cent decline in the S&P BSE Sensex today.