Tremendous rise in Vodafone Idea shares
Tuesday, December 2, brought a new ray of relief for the investors of Vodafone Idea (Vi). The shares of this telecom company, which was burdened with huge debt and AGR dues for a long time, suddenly saw a rise of up to 4%. There is no rumor behind this greenery in the market, rather there is a very important statement of the Union Communications Minister, which has raised hope in the minds of investors that the company may get ‘Sanjeevani’ before the end of the year. In the stock market, Vodafone Idea stock touched a high of Rs 10.32 in intraday trading.
Government’s ‘green signal’
At the center of this entire incident is a recent statement by Union Telecom Minister Jyotiraditya Scindia. While talking to a media channel, he clearly indicated that the government vodafone idea Is considering measures to provide relief, but all this will be within the ambit of law.
Scindia clarified that the ministry is closely studying the legal limitations of the decision given by the Supreme Court last month. He said, “The decision should be evaluated from the perspective of what can be done and what cannot be done. We cannot cross the boundaries of the Supreme Court’s decision.” This statement shows that the government wants to help the company, but it is taking cautious steps so that it does not get into any legal trouble in the future.
The most important thing is that the minister has also given a big hint regarding the time limit. He said that the government can complete its assessment in the next few weeks. This is being interpreted to mean that a relief package can be announced by the end of the year, provided a formal request comes from the company.
Hope of relief from the burden of Rs 78,500 crore
Actually, Vodafone Idea has huge dues of AGR (Adjusted Gross Revenue). The company’s CEO Abhijeet Kishore had recently told that by the end of September 2025, the AGR liability on the company is about Rs 78,500 crore. This amount is so huge that without relief from it, the future of the company may hang in the balance.
However, on October 27, the company got a big relief from the Supreme Court. The court had allowed the government to reconsider the additional demand for AGR for the period up to the financial year 2016-2017. This involves a comprehensive reassessment of all dues including interest and penalty. Now the ball is in the government’s court and the minister’s statement has made it clear that the government is serious about resolving this issue.
increasing confidence of investors
The stock market always depends on future possibilities. As soon as the news of relief came, investors intensified buying of Vodafone Idea shares. If we look at the data of last three months, this stock has shown a spectacular rally of 57%. At the same time, in the last six months it has given a return of 45% to its investors.
This company, which was once considered a sinking ship by market experts, has today become a company with a market cap of more than Rs 1,10,500 crore. On Tuesday, the stock was trading around Rs 10.20, which was 2.62% above the previous closing price. This rise shows that the market expects that the government’s decision will be in favor of the company.
What are technical charts called?
Drumil Vithalani, Technical Research Analyst, Bonanza believes that Vodafone Idea shares are in a strong uptrend in the short-term. In technical terms, the stock is above its 9-EMA (Exponential Moving Average) and its supertrend structure is ‘positive’. Formation of ‘Higher Highs and Higher Lows’ on the chart indicates that the stock is continuously gaining strength.
According to experts, as long as this stock remains above Rs 9.80, its trend is positive and it may soon go to the level of Rs 10.80 to Rs 11.20. If it is successful in closing above Rs 10.50, then it may rise even more. However, investors should keep an eye on the level of Rs 9.70, because if it goes below this level, the trend may weaken.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.