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Vodafone Idea shares hit a 52-week high of Rs 16.40 on the BSE, up 15 percent, on December 9 morning.
The stock seems to be on a tear as the company’s prospects look interesting on the back of a host of recent developments. Over the past one month, the stock has climbed more than 55 percent from the levels of Rs 10.50.
All three private telecom players – Bharti Airtel, Vodafone Idea and Reliance Industries-owned Reliance Jio – have increased tariffs across plans by up to 25 percent. Analysts believe it is a positive move for the sector which could boost their operating profits by at least 40 percent.
This, coupled with a moratorium on government dues, will help Vodafone Idea invest more aggressively into 5G technology.
The company is set to disburse interest on its bonds in time by December 13 as it managed to raise funds for the repayment, bankers told Business Standard.
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The company had also fixed the record date for the next tranche of 7.77 percent unsecured redeemable non-convertible debentures on December 20 and pay the interest on January 4 next year, the report said.
It has to cough up Rs 6,000 crore to its bondholders between December 13 and March 2022, and plans to use its own cash flows and bank funds to repay the bond holders, the newspaper reported.
Also read: Steps to ease of doing business, banking sector support will enhance telecom industry’s strength: Kumar Mangalam Birla
At the Mobile India Congress on December 8, Aditya Birla Group Chairman Kumar Mangalam Birla said the mobile industry will play a “vital role” in India’s vision to be a $ 5-trillion economy by 2025, of which $ 1 trillion will be contribution from the digital sphere.
He also lauded the government’s move in approving a relief package for the telecom industry, which included a four-year break for companies from paying statutory dues, permission to share scarce airwaves, change in the definition of revenue on which levies are paid, and allowing 100 per cent foreign investment through the automatic route.
Vodafone Idea is also in talks with local and international telecom vendors and system integrators for sourcing gears for its 5G network, an Economic Times report said.
