Vi shares jump over 8%: What's behind the sharp rally?
What's the story
Vodafone Idea's stock price surged by over 8% in intraday trade today, August 25. The surge has brought the stock close to its 52-week high of ₹15.34. The trading volume was massive, with over three crore shares changing hands, significantly higher than the average trading volume for the company.
Stock performance
Shares up over 30% year-to-date
Vodafone Idea's stock has been on a stellar run this week, gaining over 7%.
The company's shares are up over 30% year-to-date and have more than doubled in the last year.
This strong performance comes as the company is reportedly close to finalizing a ₹35,000 crore funding deal with SBI.
The deal includes a ₹25,000 crore loan and ₹10,000 crore as credit.
Financial results
Revenue rose by 5.8% to ₹11,539 crore
In the June quarter, Vodafone Idea's revenue rose by 5.8% to ₹11,539 crore, up from ₹10,905.50 crore a year ago.
The average revenue per user (ARPU) also increased to ₹195 in the June quarter from ₹177 in the previous quarter, a 10.2% year-on-year increase mainly driven by customer upgrades.
Subscriber growth
Subscriber base grew to 193.1 million in June quarter
Vodafone Idea's subscriber base grew to 193.1 million as of June 30, up from 192.8 million at the end of March quarter. This marks the company's first quarter of net subscriber additions since its merger.
The company's 4G/5G subscriber base also grew to 130.1 million from 127.4 million a year ago, while it expanded its 5G coverage to over 200 cities across India.