New Delhi [India], November 3 (ANI): Vodafone Idea shares surged nearly 10 per cent on Monday, closing the week’s opening session significantly higher than the previous day’s close.
The sharp rise followed a media report citing unnamed sources that claimed private equity firm Tillman Global Holdings (TGH) was in talks to invest between USD 4-6 billion (around Rs 35,000-52,800 crore) in Vodafone Idea (Vi) and take operational control of the “cash-strapped and loss-making telecom operator.”
Shares of Vodafone Idea closed the session at Rs 9.58, up 9.74 per cent, after touching an intra-day high of Rs 9.96. So far this year, Vodafone Idea shares have risen 20 per cent cumulatively, and 34 per cent over the past six months, according to market data.
At 15:40 IST, shortly after market closing, the company clarified in a stock exchange filing that “Currently, there is no proposal being considered by the Board that requires disclosure as reported by the media.”
Vodafone Idea added that it continues to explore various funding opportunities within the authorizations granted by its Board. “As and when such proposals are considered by the Board of Directors of the Company that warrant disclosures, the Company complies with the disclosure obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” the company said.
“We wish to reiterate and clarify that the Company will comply with SEBI Listing Regulations and duly keep the stock exchanges informed of all the price-sensitive information,” the statement concluded.
In a major relief to Vodafone Idea, the Supreme Court on October 27 allowed the Centre to reconsider the issue of additional adjusted gross revenue (AGR) demands raised by the Department of Telecommunications (DoT) for the period up to FY 2016-17.
A bench comprising Chief Justice of India BR Gavai and Justice K Vinod Chandran took note of the government’s submission that it is willing to examine and reconsider the matter. Solicitor General Tushar Mehta, representing the Centre, informed the bench that the government holds a 49 per cent stake in the company and that about 20 crore customers are involved.
The apex court’s decision to allow the government to revisit the issue—viewed as a policy matter—has also been cited by analysts as a factor contributing to Vodafone Idea’s recent stock rally. (ANI)
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