Vodafone Idea shares surge over 38% amid reports of govt unlikely to invoke company's bank guarantees
Vodafone Idea's shares on Wednesday closed over 38 percent amid reports that the government in unlikely to invoke the company's bank guarantees as of now
On the BSE, the Vodafone Idea shares gained as much as 48.18 percent to Rs 4.49 during the day
It closed 38.28 percent higher at Rs 4.19
The NSE saw an exchange of more than 100 crore shares of Vodafone Idea, and over 14 crore units were traded on the BSE
New Delhi: Vodafone Idea's shares on Wednesday closed over 38 percent amid reports that the government in unlikely to invoke the company's bank guarantees as of now.
On the BSE, the stock gained as much as 48.18 percent to Rs 4.49 during the day. It closed 38.28 percent higher at Rs 4.19.
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On the National Stock Exchange (NSE), the scrip rose 48.33 percent to touch a high of Rs 4.45. Later, after shedding some gains, it settled 40 percent up at Rs 4.20.
The stock has ended the day in green after declining for seven consecutive sessions.
The NSE saw an exchange of more than 100 crore shares of Vodafone Idea, and over 14 crore units were traded on the BSE.
In this regard, the BSE sought a clarification from the telecom service provider about the sudden movement in the stock price.
The company said all the information furnished by it is in public domain and there is no price-sensitive information pending which is to be disclosed to the stock exchanges.
"There is no such announcement or price-sensitive information, which is pending to be intimated by the company to the stock exchanges.
"All the information furnished by the company is in public domain and the company will comply with the Sebi Regulations, 2015, and duly keep the stock exchanges informed of all the price-sensitive information," the company said in its clarification to the BSE.
According to the latest media reports, the government is unlikely to invoke bank guarantees of Vodafone Idea as of now.
Encashing of the bank guarantees may sound the death knell for companies such as Vodafone Idea which has been struggling to garner the dues.
A financial bank guarantee is equal to two quarters of licence fee and other dues. This amount could be in the range of Rs 5,000 crore each for Airtel and Vodafone Idea.
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