Vodafone Idea (VIL) shares rose 20 percent, for the second day in a row, to 11.88 rupees on the BSE on Thursday before the board meeting on Friday to consider the fundraising plan. Shares of the telecommunications service provider had risen 11 percent on Wednesday.
With the increase of the last two days, VIL’s share price has soared 54% from Rs 7.69, touched in intraday trading on September 1. On Tuesday, VIL shares had finished 13% lower at Rs 8.89 after the Supreme Court allowed Staggered Payments to settle Adjusted Gross Income (AGR) fees. Allowed a 10-year repayment period for the AGR liability (at 8 percent of the MCLR), with 10 percent of total installments to be paid in advance on March 31 and 21 and the remainder in annual payments starting March 22 of March.
After market hours on Tuesday, VIL informed the stock exchanges that “a meeting of the Company’s board of directors is scheduled for September 4, 2020 to consider and evaluate each and every one of the fundraising proposals. in one or more sections. by means of a public issue, preferential award, private placement, including placement of qualified institutions or by any other permissible modality and / or combination thereof that is considered appropriate, through the issuance of capital shares or through the issuance of any instrument or securities “. CLICK HERE FOR CHANGE FILE
VIL has already paid Rs 7,854 crore towards AGR owed to the Department of Telecommunications (DoT) to date.
ICICI Securities analysts expect VIL’s ability to pay (as well as the promise of going concern) to be a near impossible feat unless there is an immediate infusion of funds (a board meeting is already scheduled for the same) and a rate increase along with an arrest for loss of customers. “Interestingly, in our opinion, a substantial rate hike will be necessary to attract the infusion of funds from outside investors,” the brokerage firm said in the telecoms sector update.
Meanwhile, according to media reports, US wireless provider Verizon Communications Inc and Amazon.com Inc can invest more than $ 4 billion for a stake in Vodafone Idea. CLICK HERE TO GET THE FULL REPORT
At 02:12 pm, VIL was trading 19 percent higher at Rs 11.79 on the BSE, against a 0.03 percent drop on the S&P BSE Sensex. Over-the-counter trading volumes more than doubled with a total of 1,194 million equity shares changing hands in NSE and BSE, so far.
First Post: Thursday, Sep 3, 2020 2:16 PM IST
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