Shares of Vodafone Idea jumped 10% in intraday trade on BSE on September 7 even as the market benchmark the Sensex traded lower.
The stock opened at ₹9.12 against the previous close of ₹9.14 and jumped 10% to ₹10.05. The stock finally closed 6.89% higher at ₹9.77.
In the last one year, the stock has jumped 18%. However, it is still 42% down from its 52-week high of ₹16.79 that it hit on December 10, 2021.
As brokerage firm Nirmal Bang highlighted the company recently prepaid a short-term loan of around ₹2,700 crore to State Bank of India to shore up lenders' confidence as it urgently seeks fresh bank funds to tie up equipment supply deals for 5G networks and also clear some of its near ₹15,000-crore trade payables, comprising dues to tower companies, network gear vendors and other suppliers.
The brokerage added that the debt-ridden telecom operator's 5G services launch will depend on several factors such as use cases, customer demand, competitive dynamics, etc.
Vodafone Idea's Managing Director and CEO Ravinder Takker said that the company's promoters have invested ₹4,940 crore and the company is in active discussion with investors for fundraising.
The company reported a consolidated loss of ₹7,296.7 crore in the April-June quarter compared to ₹7,319 crore in the corresponding quarter last year.
The telecom major's revenue from operations came in at ₹10,410 crore, up 13.7% YoY as against ₹9,152 crore in Q1FY22.
Shares of the company traded 7% up at ₹9.78 at 10 am on BSE.
According to a MintGenie poll, an average of 20 analysts have a ‘sell’ call on the stock.
Disclaimer: The views and recommendations given in this article are those of individual analysts and broking firms. These do not represent the views of MintGenie.
