Share price of Vodafone Idea surged by 5% following the announcement of new divestments.
Share price of Vodafone Idea surged: Vodafone Idea saw a significant increase in its stock price on Tuesday, January 14, with shares surging by over 5% following the release of new divestment updates by the telecom giant.
Omega Telecom Holdings Private Limited, previously holding 279,017,784 equity shares of Vodafone Idea (0.40% of the company’s equity share capital), acquired an additional 1,084,594,607 equity shares through a preferential issue.
Similarly, Usha Martin Telematics Limited (UMTL), owning 91,123,113 equity shares of Vodafone Idea (0.13% of the equity share capital), secured 608,623,754 additional equity shares through a similar preferential issue.
These announcements signify significant changes in shareholding patterns, boosting investor confidence and driving up the stock price.
Stock Price Trend
The stock price surged by 5.1% to reach a daily high of ₹8.14. Despite this increase, the telecom stock is still significantly below its 52-week high of ₹19.15, which was reached in June 2024. On a positive note, it has shown a growth of over 23% from its 52-week low of ₹6.60, recorded in November 2024.
Unfortunately, the stock has experienced a decline of over 50% in investor wealth over the past year. However, in January 2025, it has managed to gain 2%.
In other news, Usha Martin stock also saw a rise of 2.6% to reach a daily high of ₹351.10 following recent developments.
Brokerage View
Citi recently recommended a Buy call on Vodafone Idea with a target price of ₹13 per share, indicating a potential upside of 60%. This recommendation was based on the government’s decision to waive bank guarantees, providing significant relief to the company. This waiver has removed a major obstacle for Vodafone Idea in securing debt funding. The positive impact of this decision is also expected to benefit Indus Towers. However, Citi emphasized the importance of monitoring progress on debt funding in the future.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.