The stock has, so far, surged 10 per cent to Rs 9.49 in the intra-day trade today on the BSE. It trades in the futures & option (F&O) segment and thus has no circuit limits.
That apart, the shares of the telecom services provider hit an over nine-months high today and was trading close to its face value of Rs 10, which last time seen on July 26, 2019. In the past one month, the stock has zoomed 129 per cent from level of Rs 4.10, as compared to 7 per cent rise in the S&P BSE Sensex.
Thus far in the current week, Vodafone Idea has soared 45 per cent on reports that the global technology giant Google is in talks to buy a 5 per cent stake in the company. The company, however, clarified on May 29 that it was constantly evaluating various opportunities but there was no proposal before the board of the firm as yet.
“As part of the corporate strategy, the company constantly evaluates various opportunities for enhancing the stakeholders’ value. As and when such proposals are considered by the board of directors of the company warranting disclosures, the company shall comply with the disclosure obligations,” Vodafone Idea said.
Meanwhile, according to a Business Standard report, influential brokerage CLSA on Wednesday issued a ‘buy’ rating on the stock with a 12-month price target of Rs 12. The foreign brokerage firm sees further upside from average revenue per user (Arpu) growth, likely adjusted gross revenue (AGR) resolution and potential floor tariffs.
With the return of growth led by tariff hikes, Vodafone Idea promoters may assess incremental funding, irrespective of AGR cases outcome. Vodafone Idea’s Arpu Rs 109 is nearly 20 per cent lower than Airtel. CLSA expects the company’s Arpu to grow by 30 per cent by FY22 underpinned by tariff hikes. CLICK HERE TO READ FULL REPORT