Shares of Vodafone Idea hit a 52-week low of Rs 7.35 in intraday trade on Monday, down 6% on the BSE, amid heavy volume in an otherwise firm market.

Shares of the telecommunications service provider are trading at their lowest level since September 2021. It fell below the previous low of Rs 7.61 on December 23, 2022. In contrast, the S&P BSE Sensex gained 1.6% to 60,841.

The average OTC volume has jumped nearly 1.5 times as of 11:33 am, with 250 million shares changing hands on the NSE and BSE, representing 0.78% of Vodafone Idea’s total share capital.

According to media reports, the Department of Telecommunications (DoT) is now studying Vodafone Idea’s finances and operations to ascertain its health. The government will look at the strength of telcos and their performance with customers.

Meanwhile, loss-making Indian telecom operator Vodafone Idea has sought emergency funding of at least Rs 7,000 crore ($846 million) from local banks reluctant to extend new loans, Reuters reported.

“The company needs funds to stay afloat. But lenders will wait for a capital increase by its main shareholder Vodafone Group UK and local investor Aditya Birla Group or a debt-for-equity swap by the government before awarding the heavily indebted operator access to more funds,” the report said.

Vodafone Idea is awaiting final approval of a government package that will allow it to convert $1.95 billion in interest on deferred adjusted gross income owed to the government into equity.