Shares of Vodafone Idea surged by over 5 per cent on Tuesday, January 14, following the release of new divestment updates by the telecom giant.
Omega Telecom Holdings Private Limited, which previously held 279,017,784 equity shares of Vodafone Idea (constituting 0.40 per cent of the company's equity share capital), acquired an additional 1,084,594,607 equity shares through a preferential issue by the company.
Similarly, Usha Martin Telematics Limited (UMTL), which owned 91,123,113 equity shares of the telecom giant (accounting for 0.13 per cent of the equity share capital), secured 608,623,754 additional equity shares through a similar preferential issue.
The announcements highlight significant changes in shareholding patterns, bolstering investor sentiment and driving up the stock price.
The stock climbed as much as 5.1 per cent to its day's high of ₹8.14. The telecom stock is still over 57 per cent away from its 52-week high of ₹19.15, hit in June 2024. Meanwhile, it has advanced over 23 per cent from its 52-week low of ₹6.60, recorded in November 2024.
The stock has eroded over 50 per cent of its investor wealth in the last one year, while in January 2025 so far, it has added 2 per cent.
Meanwhile, Usha Martin stock also jumped as much as 2.6 per cent to its day's high of ₹351.10 post the news.
Citi recently issued a 'Buy' call on Vodafone Idea with a target price of ₹13 per share (60 per cent upside potential), citing the government's waiver of bank guarantees as a significant relief for the company. The waiver addresses a critical hurdle, as Vodafone Idea was unable to provide these guarantees, which had been a major impediment to securing debt funding. Additionally, the development is expected to have positive implications for Indus Towers. However, Citi noted that progress on debt funding remains a key factor to monitor in the future.
Vodafone Idea also announced today that it has teamed up with HCLSoftware, a division of HCLTech, to enhance the efficiency and intelligence of its 4G and 5G networks. Vi is leveraging HCL Augmented Network Automation (HCL ANA), a multi-vendor self-optimizing network (MV-SON) platform, to streamline the management of its Ericsson and Samsung networks. This cutting-edge solution aims to improve network performance, optimize energy usage, and deliver enhanced services to customers.
HCL ANA employs Artificial Intelligence (AI) to simplify the oversight of Vi’s complex, multi-vendor, multi-technology, and multi-layered networks, ensuring seamless integration and streamlined operations. The platform is also SMO-ready (ORAN), ensuring that the investment remains future-proof.
This partnership offers multiple advantages for both Vi and its users. The HCL ANA platform's open architecture enables Vi to independently manage and automate its network, reducing reliance on OEM-specific features and applications. It also aids in cutting energy consumption, lowering operational costs, and enhancing sustainability. For customers, the collaboration promises a faster, more reliable, and efficient network experience.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.