8,225.65-372.1
Stock Analysis, IPO, Mutual Funds, Bonds & More

Vodafone Idea rallies 40% on hopes of relief from govt

Vodafone Idea Chairman Kumar Mangalam Birla on Tuesday met Telecom Secretary Anshu Prakash.

ETMarkets.com|
Last Updated: Feb 19, 2020, 06.27 PM IST
0Comments
Vodafone-Idea
The official said invoking bank guarantees would be the precursor to termination of telecom licences.
Shares of Vodafone Idea advanced over 40 per cent in Wednesday’s trade after reports that the government is unlikely to invoke the company’s bank guarantees for now even as the officials of the telecom and finance ministries met Cabinet secretary Rajiv Gauba to discuss ways to ensure that the sector retains three private players.

The scrip rose as much as 48.18 per cent to hit a high of Rs 4.49 on BSE during the day.

“First round of meetings happened on Tuesday… The government could consider postponing or staggering other payments due to it, in order to give some flexibility to telcos to cough up money towards AGR (adjusted gross revenue) dues,” ET said quoting an official. “These are just very initial discussions.”

The official said invoking bank guarantees would be the precursor to termination of telecom licences.

In another development, Vodafone Idea Chairman Kumar Mangalam Birla on Tuesday also met Telecom Secretary Anshu Prakash as he looked for options to keep the company afloat.

After the meeting, Birla said he “cannot say anything at the moment.”

Birla, who met the telecom secretary for over an hour, was accompanied by Ravinder Takkar, MD & CEO of Vodafone Idea.

On the other hand, shares of Bharti Airtel were up 0.25 per cent at Rs 549. Bharti Airtel on Monday paid Rs 10,000 crore to the government and said it would pay the balance dues as per its self estimates before March 17.

Vodafone Idea paid Rs 2,500 crore on Monday and said it will pay another Rs 1,000 crore by Friday. While the government has estimated Vodafone Idea’s AGR dues at Rs 57,000 crore, the telco’s own estimates peg the amount at around Rs 23,000 crore.

The shares of the company closed 38.28 per cent higher at Rs 4.19 on BSE.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service