Vodafone-Idea
The shares of Vodafone Idea saw a rise of 7% day on Tuesday 23 September. This fast suddenly came and no immediate reason has been revealed behind it. This is the third time in the last few days when the company’s shares have seen a good lead.
In the last 12 trading sessions, shares have gained eight times, which can be considered a slightly reliable sign for investors. The Supreme Court hearing last week was also a reason behind this fast. The court had agreed to consider the company’s petition related to the company’s AGR (adjustable gross revenue), which raised hopes for investors.
Supreme Court hearing and government’s stand
During the hearing last Friday, the government said that it does not oppose the AGR petition of Vodafone Idea, but it is necessary to find a solution as the government itself is a big equity holder of the company. Currently, the government’s stake has reached 49% in the company.
Several officials of the ministry, including Telecom Minister Jyotiraditya Scindia, have already said that the government will not increase its share of more than 49%. This stance of the government is considered an important sign for the company’s financial situation and future prospects.
Brokerage firm City opinion: shopping with high risk
According to a CNBC report, the brokerage firm City on Monday described the shares of Vodafone Idea as ‘high risk’ shopping and called a target price of Rs 10. According to the city, the company can get some relief from accepting the petition of the Supreme Court and the support of the government, which can improve the company’s position. But at the same time, brokerage has also advised investors to be vigilant as Vodafone Idea’s financial condition has not been fully strengthened and the risk still remains.
Like the Vodafone Idea, the shares of its subsidiary Indus Towers also saw a boom. The stock of Indus Towers also jumped above the lowest level of the day to close to Rs 358 with a gain of 0.6% on Tuesday.