Vodafone Idea surges over 61% in a month; Creates record high in 2.5 years
The Vodafone Idea (Vi) shares have reached around two and a half years high on Monday, following a surge for the fourth straight season.
New Delhi: The Vodafone Idea (Vi) shares have reached around two and a half years high on Monday, following a surge for the fourth straight season. The company gained 10% to Rs 15.88 per shares level for the first time since May 2019 on the BSE intraday trade.
The stock has been witnessing a surge in multiple triggers. However, the company got relief after the government announced a moratorium for AGR (adjusted gross revenue) dues that are to be paid to the department of telecommunications, which comes under the Ministry of Information and Telecom.
After Bharti Airtel announced a hike in price, Vodafone Idea in the last week of November also declared a tariff hike of 20%-25%. This hike has also created an impact on the stock price surge as the counter in November has reached over 61% from Rs 9.82 per share level on the BSE.
Meanwhile, the global brokerage firm Goldman Sachs assured that the telecom sector is in a good position and also restored faith in the cash-strapped company’s shares. Besides, it believes that the current increase in price will result in an annual FCF (free cash flow) rise of $ 1 billion for the telecom companies.
In the investor presentation, the company ran through that it has 1768MHz spectrum holding, at around 184000 unique locations. Additionally, it has nearly 50,500 broadband sites with around 285500 km fibre connections.
As per the total active wireless subscriber base, the market share of September holds 23.7% share, as compared to 34.8% and 35.7% of Bharti Airtel and Reliance Jio, the two majors of the telecom industry.