New Delhi: In a surprising turn of events, Vodafone Idea shares witnessed a remarkable surge, reaching a fresh 52-week high on the last trading day of the year. The telecom giant’s stock skyrocketed nearly 23 percent on December 29, marking a substantial increase in value.
Vodafone Idea shares experienced a notable upswing, jumping 22.6 percent to Rs 16.25 on the NSE (National Stock Exchange). As of 3 pm, the shares were trading near the day’s peak at Rs 16.10 apiece. (Also Read: Tax Season Is Here! What Is Discard Return? How To Avail It? Check Here)
Over the past six months, Vodafone Idea shares have more than doubled investors’ wealth, registering an impressive gain of 116.78 percent. This surge stands in stark contrast to the Nifty 50, a frontline index, which saw a comparatively modest rise of 13.28 percent during the same period. (Oil Prices To Go Down? Here’s What Industry Sources Are Saying)
The trading volume for Vodafone Idea on December 29 reached unprecedented levels, with 175 crore shares changing hands. This surge in activity starkly contrasts with the one-week average of 26 crore shares and the monthly average of 33 crore shares.
Reports suggest that the surge in Vodafone Idea’s stock price may be attributed to a supposed equity infusion by the promoters of the beleaguered telecom company.
However, sources familiar with the ongoing negotiations have indicated that the unfettered rally in the share price over the last six months has temporarily disrupted discussions about the much-anticipated fund infusion.
Despite the company setting December as the deadline for the fund infusion, the recent run-up in the stock price has reportedly posed a challenge to the negotiation process. The unexpected surge in the share value, ironically, appears to be driven by expectations of fundraising, according to insider sources.
For the quarter ending September, Vodafone Idea reported widening losses, totaling Rs 8737.9 crore compared to Rs 7595.5 crore in the same quarter the previous year.
The revenue from operations, however, witnessed a modest increase of 0.95 percent, reaching Rs 10,716.3 crore from Rs 10,614.6 crore in the corresponding quarter, as disclosed in an exchange filing.