Vodafone Idea shares surge 23% on continued talk of equity infusion

Vodafone Idea's trading volume on December 29 was significantly higher at 175 crore shares, compared to the one-week average of 26 crore shares and the monthly average of 33 crore shares

Vodafone Idea shares surged to a fresh 52-week high on the last trading day of the year, skyrocketing almost 23 percent on December 29. The telecom operator’s stock jumped 22.6 percent to Rs 16.25 on the NSE. As of 3 pm, the shares were trading near the day’s high, at Rs 16.10 apiece.

Vodafone Idea shares have more than doubled investors' wealth over the past six months, gaining 116.78 percent. In comparison, the frontline index Nifty 50 has risen 13.28 percent during the same period. Vodafone Idea's trading volume on December 29 was significantly higher at 175 crore shares, compared to the one-week average of 26 crore shares and the monthly average of 33 crore shares.

Reports suggest that the surge in the stock price is a result of a supposed equity infusion by the promoters of the embattled telco. An unfettered rally in the share price of Vodafone Idea (Vi) in the last six months has stalled the much-anticipated fund infusion in the cash-strapped telecom company, sources aware of the ongoing negotiations told Moneycontrol, requesting anonymity.

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While the company in recent filings set December as the deadline for the fund infusion, the stock price run-up has temporarily derailed discussions, the sources said. “Ironically, the current rally in the company shares is driven by expectations of fundraising,” added the source.

For the quarter ended September, Vodafone Idea’s losses widened to Rs 8737.9 crore against Rs 7595.5 crore in the same quarter last year. Its revenue from operations stood at Rs 10,716.3 crore, rising 0.95 percent from 10,614.6 crore in the corresponding quarter, the company said in an exchange filing.

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