Home / Markets / Stock Markets /  Vodafone Idea shares recover, shoot up over 13% in 1 day

One of the leading telecom companies, Vodafone Idea shares recovered from the previous days' loss on Wednesday by rising more than 13% so far in the day. In the midcap basket, today, Vodafone Idea is among the top picks. The stock has gained after a three-day losing streak on Dalal Street as investors turn bullish on the company tracking the broader positive sentiment of markets. Broadly, the telecom indices have advanced in the trading session.

Vodafone Idea shares ended at 8.65 apiece up by 9.36% on BSE. The stock has rallied by a whopping 13.27% with an intraday high of 8.96 apiece. Its market cap is currently over 27,847 crore. Also, the stock recovered drastically from its 52-week low of 7.75 apiece that was recorded in the early deals. The majority of the buying came in during the second half of the trading session.

On the previous day, Vodafone Idea stock stood at 7.91 apiece on BSE.

Notably, Vodafone Idea shares were in the red from December 9th to 13th. The stock held above 8 mark on December 8th before correcting.

The stock has been in focus this week after it extended the due date for subscription of optionally convertible debentures (OCDs) to ATC to February 2023. 

Last week, on December 10th, Vodafone Idea in its regulatory filing stated that the company and ATC Telecom Infrastructure (ATC) have both the Company and ATC have mutually extended the last date for a subscription of optionally convertible debentures (OCDs) to February 28th, 2023, or such later date as may be mutually agreed, subject to fulfilment of certain conditions precedent, including inter alia the approval of the shareholders of the Company and conversion by the Government of India of interest from deferment of Adjusted Gross Revenue and Spectrum Dues owed by the Company into equity shares of the Company.

In October, Vodafone Idea's board of directors approved the issuance of Indian rupee-denominated debentures to ATC aggregating to 1,600 crore. The debentures are to be issued in one or more tranches on a preferential basis. The funds raised will be used to pay ATC amounts owed to ATC by Vodafone Idea under the master lease agreements and for general corporate purposes.

As per the regulatory filing, these debentures will carry a coupon rate of 11.2% per annum and they will be payable semi-annually during its tenure which is a maximum of 18 months from the date of issuance and allotment of the first tranche.

Also, the company received approval for the issuance of these debentures in the extraordinary general meeting held on November 21st. However, on December 6th, Vodafone Idea revealed that they have not received any communication from the government on such conversion, thereby, the issuance of OCDs to ATC could not complete.

In its research note dated December 9th, ICICI Securities stated that industry-adjusted gross revenue rose by 1.6% qoq and 16.4% yoy to 54,300 crore in Q2FY23. AGR is defined as gross revenue minus access and pass-through charges.

For Vodafone Idea, the ICICI Securities report added that the company's AGR (including NLD) rose 0.5% QoQ / 9.7% YoY to Rs9,500 crore. Growth in leadership circles was slower at 0.9% QoQ due to a dip in QoQ revenue in UP east (down 11.2%), MP (down 3.6%), and Maharashtra (down 0.6%). Growth in established circles was relatively faster at 3.2% QoQ while that in others increased by 2.9%.

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