Vodafone Idea share price: Telecom firm stock gains 36% in the last 5 sessions – know what’s driving the counter

The cash-strapped Vodafone Idea shares on Tuesday jumped near 15 per cent to Rs 8.29 per share on the BSE intraday trade. The stock in the last 5 sessions has been trading strong, up over 36 per cent from Rs 6.09 per share on September 1, 2021.

The surge in the stock is perhaps on the back of the company’s release of an annual report. It said in an outlook of annual report filed to the exchanges that “The company is disappointed by the Supreme Court verdict on the AGR dues issue and will take further legal recourse as appropriate.”

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Vodafone Idea further said that it believes the government recognizes the criticality of the sector and the importance of retaining healthy competition amongst private sector operators. 

Moreover, “The company is hopeful that the government will provide the necessary support to address all structural issues faced by the sector, as the industry continues to remain under unsustainable financial duress,” the third-largest telecom service provider said on Tuesday. 

Moreover, last week the telecom firm has also announced a date for 26 th Annual General Meeting) on September 29, 2021, to receive, consider and adopt the audited consolidated and standalone financial statements for the financial year ended March 31, 2021.

The AGM has also been called upon to appoint a Director in place of Mr. Himanshu Kapania, who retires by rotation, and being eligible, offers himself for re-appointment, Vodafone Idea said.

The company’s loss widened on a sequential basis, as it reported Rs 7319 crore in the June-ended quarter as compared to a net loss of Rs 7,022 crore due to lower revenue. It reported a net loss of Rs 25,460 crore in the same period a year ago due to provisioning for adjusted revenue dues liability.

The stock at around 02:52 pm is trading near day’s high level to Rs 8.23 per share, as compared to flat but positive S&P BSE Sensex on Tuesday.