Vodafone Idea Shares Jump As Government Approves Conversion Of AGR Dues To Equity
Vodafone Idea has been directed to issue 16.13 million equity shares of face value Rs 10 each at an issue price of Rs 10 each.
Shares of Vodafone Idea Ltd. jumped over 25% after getting relief from the government on their AGR dues payment.
The government of India has directed the telecom company to issue 16.13 million equity shares of face value Rs 10 each at an issue price of Rs 10 each to the government in lieu of the interest to be paid.
"Ministry of Communications...passed an order today i.e. Feb. 3, 2023...directing the Company to convert the NPV of the interest related to deferment of spectrum auction instalments and AGR dues into equity shares to be issued to the Government of India", the company said in it filing.
Shares of the company gained 22.63% to Rs 8.40 apiece, while the benchmark Nifty 50 declined 0.43%.
The total traded volume so far today stands at 8.1 times its 30-day average. The relative strength index at 73, implies that the stock may be overbought.
Out of the 20 analysts tracking the company, 16 recommend a 'hold' and four suggest 'sell' the stock, according to Bloomberg data.
The return potential, as calculated by the consensus of analyst estimates, stands at a downside of 22.5% over the next 12 months.