Vodafone Idea gains 30% in weak market after promising 'new beginning'

According to Business Standard report the Department of Telecommunications indicated that the company was "positive" about India and that it wanted to make a ''new and good beginning'' in the country.

Shares of Vodafone Idea were up 30 per cent at Rs 4.30 on the BSE on Monday, in intra-day trade on back of heavy volumes.

Shares gained after the Department of Telecommunications (DoT) indicated that the company was “positive” about India and that it wanted to make a ‘’new and good beginning’’ in the country, according to a Business Standard report.

The company on Friday announced that it had completed assessing its dues linked to adjusted gross revenue (AGR). At Rs 21,533 crore, Vodafone Idea’s calculation of the AGR liability turned out to be less than half of the government estimate.

"The company has filed its self-assessment of the AGR liabilities with the DoT. The self-assessment discloses the company’s AGR liabilities to aggregate Rs 21,533 crore, including a principal amount of Rs 6,854 crore for the period from FY 2006-07 to FY 2018-19 and interest up to February 2020,” Vodafone Idea said in exchange filing.

Vodafone Group CEO Nick Read, who’s maintained that it would be tough to continue in India as a going concern without relief from the government, was advised to pay up at least the principal amount of the AGR dues before March 17, the next date of the Supreme Court hearing, said the report.

“We want Vodafone Idea to stay invested in India…. With the digital push by the government of the day, there’s enormous business opportunity in India. But there was need for the company to upgrade its technology,” a top official said, added report.

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At 02:54 pm; the stock was trading 22 per cent higher at Rs 4.04 on the BSE, against 4.8 per cent decline in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 674 million shares changed hands on the NSE and BSE so far.

The stock of Vodafone Idea hit an all-time low of Rs 2.61 on November 15, 2019. It touched 52-week high of Rs 21.32 on March 13, 2019.