10% increase in Vodafone Idea shares on news of equity investment

10% increase in Vodafone Idea shares on news of equity investment

 10% increase in Vodafone Idea shares on news of equity investment

Investors' wealth has more than quadrupled thanks to Vodafone Idea shares, which have gained 137% over the last six months. Comparatively, throughout this time, the Nifty 50 frontline index has increased by almost 12%.

By the conclusion of the December quarter, VI management had said that the company's promoters will contribute up to Rs 2,000 crore in capital.

On January 1, Vodafone Idea's stock increased 10%, continuing the previous session's bounce. In only two sessions, the shares of the Aditya Birla Group-owned telecom services provider has increased by over 30% as the Street continues to acquiesce in the company's fundraising intentions.

Compared to the weekly average of 69 crore shares as well as the monthly average of 42 crore shares, a total of 109 crore shares have been traded on the BSE and NSE so far today.

Vi's shares were trading 10.6% stronger at Rs 17.70 on the National Stock Exchange (NSE) at 10:35 a.m. With a 137 percent rise over the previous half-year, this stock has more than quadrupled investors' wealth. By contrast, during the same time period, the Nifty 50 stock index has increased by almost 12%.

According to reports, the promoters of the struggling telecom business are allegedly responsible for the share price spike during the previous two sessions.

The anticipated financial infusion into the financially troubled telecom business has been hampered by the spike in Vodafone Idea (Vi) share price over the previous six months, people acquainted with the discussions told Moneycontrol. Speaking under anonymity, the insiders emphasized the delayed development of the eagerly awaited financial investment.

Remarkably, the proprietors of the firm have committed to investing up to Rs 2,000 crore by the end of the December quarter, according to the Vi management.

"The promoters informed us in writing last quarter that they would provide us with up to Rs 2,000 crore in assistance. They haven't really done much to date to contribute. To handle the short-term mismatch from the previous quarter, we have some bank money. During the results call, CEO Akshay Mundra said, "We had it in 2015."

The promoters are dedicated, he remarked. "They have pledged to provide assistance as needed. And we anticipate that the promoters' participation should come in addition to the partnership with the outside investor." This quarter will probably see the conclusion of fundraising. That's what we hope," Mundra said.

Compared to the same quarter previous year, Vodafone Idea's loss increased to Rs 8,737.9 crore from Rs 7,595.5 crore. Operating revenue for the company was Rs 10,716.3 crore, up almost 1% from Rs 10,614.6 crore during the same period.