Despite modest profits, Vodafone Idea’s stock prices soared by 20% in a single day, reaching a one-year peak in December.
During the final trading session of 2023, Vodafone Idea’s shares surged by 20%, achieving their highest point in the past year on December 29.
On December 30, in the last trading session of the year, Vodafone Idea shares rose by an impressive 23%, reaching their 52-week high in the market. This surge was attributed to a significant deal recently announced by the telecom company.
Vodafone Idea shares rose from ₹13 to ₹16 on Friday, marking a 20% increase during the trading session. While this now stands as the company’s 52-week high, the 52-week low for VI share prices was recorded at ₹5.70.
The sudden rise in VI share prices was a result of the company’s recent efforts to raise funds by selling 16.05 crore shares. The total value of the deal transaction amounted to ₹233 crore, as reported by AajTak.
Vodafone Idea’s deadline for fund-raising is set to end on December 31, and there is an expectation that the company will seek an extension as it continues discussions with various banks. VI is also engaged in talks with management to formulate a plan for the rollout of 5G in India.
Earlier this year, Vodafone Idea made a substantial payment of ₹1700 crore to the Department of Telecommunications as an installment for the spectrum acquired in 2022. This payment boosted shareholder confidence, influencing the company’s share price.
VI shareholders have seen a remarkable increase of 113% in the company’s share prices over the last six months, effectively doubling their investments. 2023 has proven to be the best year for VI shares on the stock market since its listing in 2007.
Vodafone Idea is currently in discussions with multiple lenders and banks to secure around ₹2000 crore for the company to mitigate losses and prepare for the 5G rollout. However, the finalization of the talks on this matter is yet to be achieved.
