Vodafone Idea jumps 15% to hit 52-week high
Vodafone Idea's stock price on Monday skyrocketed nearly 15% to a new 52-week high of Rs. 18.42 per share on the BSE, This comes after a 20% jump in the previous session. Over the past six months, the telecom operator's shares have more than doubled, increasing over 133%, compared to the Nifty50's 12.5% growth during the same timeframe. This impressive rally is fueled by reports of potential equity infusion by the promoters of the financially struggling company.
Trading volumes soar amid rally
On January 1, Vodafone Idea's trading volume reached a staggering 76 crore shares, significantly surpassing its one-week average of 69 crore shares and the monthly average of 42 crore shares. In the previous session, the trading volume hit an impressive 199 crore shares, as per LiveMint.
Fund infusion discussions temporarily derailed
According to sources familiar with ongoing negotiations, as told to Moneycontrol, the rapid rise in Vodafone Idea's share price over the last six months has temporarily halted the much-anticipated fund infusion in the telecom company. "Ironically, the current rally in the company shares is driven by expectations of fundraising," added the source. The company in recent filings had set December as the deadline for the fund infusion.
Financial struggles continue for Vodafone Idea
Despite the surge in share prices, Vodafone Idea still faces financial hurdles. The company reported a net loss of Rs. 8,737.9 crore for the quarter ended September 2023, up from Rs. 7,595.5 crore in the same quarter last year. Vodafone Idea lost 7.5 lakh mobile subscribers during September, bringing its wireless user count to 22.75 crore. The troubled telco's future remains uncertain as it grapples with mounting losses and a shrinking subscriber base.
