The shares of VI were quoting higher for the fourth straight trading day, hitting a 31-month high of Rs 15.24, up 5.5 per cent on the BSE. The stock of telecom services providers was trading at its highest level since May 8, 2019, and has surged 38 per cent in the last four trading sessions. With the current rally, the market value of VIL has zoomed 235 per cent from its 52-week low level of Rs 4.55 touched on August 5, 2021.
In the past two trading days, the stock has gained 19 per cent after reports suggest that the Department of Telecom (DoT) has released bank guarantees of around Rs 9,200 crore deposited for license fee and spectrum usage charges by the telecom companies, as part of the reform package announced by the government in September.
According to media reports, a bank guarantee of around Rs 2,500 crore has been released for Vodafone Idea. Meanwhile, the British telecom giant Vodafone has applied with Indian authorities to settle their retrospective tax dispute. The company said that it ‘always been confident that no tax is due on the company.
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Meanwhile, in the past 11 trading days, the market price of VIL has zoomed 53 per cent after the company increased its prepaid tariff by 20-25 per cent from November 25, 2021. On November 23, VIL announced a hike in its prepaid tariff plans by 20-22 per cent across the board and 25 per cent in base entry-level voice (2G plan), similar to Airtel. The company said the new plans would start the process of average revenue per unit (ARPU) improvement and help address the financial stress faced by the industry.
Stock Covered in the news
