Vodafone Idea (Vi) investors have been on a rollercoaster ride for the last few months. Developments just keep on coming, be it positive or negative, and they keep affecting the telco’s share price majorly. Vodafone Idea share price has surged by 10% on Wednesday morning as Care Ratings Limited (CARE) upgraded the telco’s outlook to ‘stable’ in the long run.
At the time of writing, Vodafone Idea shares are trading at Rs 11.65, up by 8.88% from the previous close price of Rs 10.70. Vi stock has touched a high of Rs 11.95 so far, which is up by more than 10%.
Bharti Airtel, Vodafone Idea, and RIL Shares All in the Green on Wednesday
Bharti Airtel, Vodafone Idea (Vi), and Reliance Industries Limited (RIL), the parent company of Reliance Jio, are all trading in the green on Wednesday.
Bharti Airtel is trading at Rs 723.80, which is 0.10% in the green, and RIL shares are trading at Rs 2391.20, up by 0.53%.
All the telecom stocks are rallying ahead of the budget announcements by Nirmala Sitharaman, Finance Minister of India. Sitharaman announced that the Indian government would come up with a production linked incentive (PLI) scheme for the manufacturing of 5G equipment, and the 5G rollouts will also happen in FY23.
While Vodafone Idea’s outlook has been turned to stable, there’s still a lot of challenges that the company needs to address. The telco had announced that it would be converting its debt into equity for the government, and that is one of the big reasons why its rating has been turned into stable. While the company’s future doesn’t look too dim now, it had to pay a huge cost for the same. Because of the equity conversion, the government will be the largest shareholder in the telecom operator. Vodafone Idea has been losing subscribers heavily, and it needs to address the situation really fast.