Media reports claimed that government officials urged its promoters to infuse as much as Rs 40,000 crore. Shares of the firm rallied nearly 6 per cent to Rs 12.12.
Earlier, many reports said Vodafone Group Plc and Aditya Birla Group were considering equity infusion into Vodafone Idea. Though the quantum was not as much as the government is seeking now.
The move comes after the government announced a raft of relief measures for India’s struggling telecom companies, including a moratorium on AGR payments, which is the biggest burden on Voda Idea.
The stock has seen frenzied investor interest recently and it has climbed nearly 90 per cent in the last one month. Analysts, however, are not very impressed and advise against buying the counter.
As per Refinitiv database, the consensus of 18 analysts on the stock is ‘sell’. None of them have ‘buy’ or ‘strong buy’ recommendations. The stock has a median price target of Rs 5 in 12 months. They provided a high estimate of Rs 12.3 and a low estimate of Rs 2.9 for Vodafone Idea.
