Vodafone Idea soars on buzz Google eyes 5% stake

Vodafone Idea surged 25.26% to Rs 7.29 on media reports that Google was considering buying 5% stake in the Indian telco.

The scrip jumped 34.88% to hit the day's high at Rs 7.85 on the BSE. The counter clocked a volume of 23.68 crore shares as against its average trading volume of 5.51 crore shares in the past one quarter.

On the NSE, the stock spurted 28.45% to Rs 7.45. The counter clocked a volume of 159.83 crore shares compared with its average trading volume of 44.12 crore shares in the past one quarter. The stock rose 34.48% to hit the day's high of Rs 7.80 on NSE today.

For Vodafone Idea, an investment by Google could boost the likelihood of its survival, the reports added.

A foreign brokerage reportedly said that such a deal would be a strategic positive for Vodafone Idea but have little impact on leverage. Capital raise could become easier if Google invests, it added.

The company's was hit hard in October 2019 after the Supreme Court of India had ruled in favor of the government on the AGR (adjusted gross revenue) issue, with grave revenue implications to the tune of over Rs 92,000 crore for the ailing telecom sector.

Consequent to the SC judgement, Vodafone Idea needed to pay over Rs 53,000 crore as licence fee, spectrum usage charge, interest and penalty dues to the DoT.

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