Vodafone Idea Soars Over 10% Ahead of Corporate Announcement

Vodafone Idea is trading strong in a subdued market on Monday as investors await an announcement from the company. Vodafone-Idea has declared that it would make a major strategic announcement at 11:45 am. The shares of Vodafone Idea soared 10 per cent to an intra-day high of Rs 13.21. At 10:35 am, the shares were trading at Rs 12.91, higher by 7.4 per cent, on the BSE.

Vodafone Idea had said on Friday it would raise fresh capital of upto Rs 25,000 crore in an effort to pay off the hefty dues it owes to the government. It plans to raise up to Rs 15,000 crore through debentures and an equal amount by issuing shares and warrants.

The fund raising plan by the country's third largest telecom operator comes in the aftermath of the Supreme Court asking the carrier to pay roughly Rs 50,000 crore in AGR dues to the government over a 10-year period; it has paid Rs 7,854 crore thus far. It also comes at a time when the country's third largest telecom operator grapples with an erosion in subscriber base in wake of an exodus towards Reliance Industries' telecoms venture, Jio Infocomm.

The BSE Sensex was quoting at 38,235.50, lower by 127.23 pointsb or 0.33 per cent and the NSE Nifty was at 11,294.70, down 38.25 points or 0.34 per cent, at the time.