New Delhi: The shares of Vodafone Idea recorded a significant jump on Monday. The VI share price soared after promoter Kumar Mangalam Birla increased his stake and a brokerage house released a positive report on the company. In Monday’s trade, market players were seen investing in Vi stock.

Vodafone Idea share closed with 4.04 per cent gains at Rs 11.58 apiece on 9 February. Kumar Mangalam Birla, the promoter of the debt-ridden telecom company, purchased additional shares of Vodafone Idea from the open market last week. He purchased a total of 4 crore 9 lakh shares, which is about 0.03 percent of the company’s total equity. Till Investors considered the promoter’s purchase as a positive signal.

Will Vodafone Idea share price rise?

Brokerage house Emkay Global Financial Services has given a positive rating on Vodafone Idea. The brokerage upgraded the stock from sell to add category. Along with this, the target price was increased from Rs 6 to Rs 12.

Vodafone Idea details on BSE as of 9 February

Previous Close: 11.13
Open: 11.29
High: 11.65
Low: 11.23
VWAP: 11.53
52 Wk High: 12.80
52 Wk Low: 6.12
Upper Price Band: 12.24
Lower Price Band: 10.02
Price Band No Band
TTQ (Lakh): 680.49
Turnover (Cr.): 78.44
2W Avg Qty`(Lakh): 600.55
Mcap Full (Cr.): 1,25,461.23
Mcap FF (Cr.): 31,884.22
EPS (TTM) -1.63 / -5.31 (Standalone / Consolidated)
CEPS (TTM) – / -0.20 (Standalone / Consolidated)
PE – / -2.18 (Standalone / Consolidated)
ROE / PB – / –
Face Value 10.00

Vodafone Idea AGR relief

In a major relief for Vodafone Idea, the government has approved a moratorium for a long period. This will reduce the company’s annual payment pressure. This decision is expected to improve the company’s cash flow. At the same time, the path for funding from banks may also become easier.

The brokerage firm said the net present value of AGR dues stood at Rs 87,000 crore, which has reduced to around Rs 50,000 crore. There is a possibility of further reduction after recalculation in the future. This could strengthen the company’s financial condition. The market took this news positively.

Expressing confidence on Vodafone Idea, the brokerage said that the company’s long-term stability is no longer a concern, however, it said that the telecom company will have to work on increasing its customer base. It called for adding the 2G customers to 4G and 5G. Increasing ARPU will remain a major challenge.

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