The talks about a relief package coming soon have helped Vodafone Idea (Vi) stock majorly. The company’s shares are 9.66% in the green early Tuesday session. Vodafone Idea’s stock has reached the figure of Rs 7.95 at the time of writing which is 9.66% up. Vi’s stock opened at Rs 7.30 and touched a low of Rs 7.15 for a brief point. The previous close for the stock was Rs 7.25, so it had opened on a high because of the market expectations.
At the same time, it is interesting to see major telecom stocks of Bharti Airtel and Reliance Industries Limited (RIL) oscillating between red and green. Both Bharti Airtel and RIL stocks had gained a lot in the last few trading days. The reason behind Idea (Vi) stock going so high could be the recent developments and the reports coming in about the relief package and how the telco can save thousands of crores.
Vodafone Idea Stock/Share Price Up Because of Expected Relief Package
Vodafone Idea’s stock has shot up almost 10% in the morning because of the market expectations. Multiple analyst reports came in yesterday saying that Vodafone Idea could save thousands of crores if it is allowed by the government to pay less interest for multiple statutory dues.
Further, if the government comes in with a relief package this month, it would provide the telco with much-needed relief in the short term. This will further help Vodafone Idea in investing the saved money in its 4G networks and also allow the telco to prepare for 5G.
According to BNP Paribas, Vodafone Idea can potentially save up to Rs 6,600 crores immediately if the government decides to reduce the interest rate charged on the deferred spectrum liabilities and relieves the telco from paying interest on the adjusted gross revenue (AGR) dues. All these reports could be the reason to fuel the fire that Vi’s stock has gained Tuesday morning.
