Vodafone Idea shares surge on possible Vodafone Group stake transfer
Business
Vodafone Idea's shares shot up over 10% on Monday after news that its parent, Vodafone Group Plc, might transfer some of its stake to the company's treasury instead of adding new cash.
The idea is to make the company's finances look healthier and help it raise ₹35,000 crore in debt, a big deal for a telecom player facing tough times.
Stock ends ₹12.19, market ₹1.08L/cr
The stock ended the day at ₹12.19 (up 8.45%), and has climbed 68% over the past year, putting its market value at ₹1.08 lakh crore.
If this share transfer happens, Vodafone Idea could use those shares later to pay off government dues or fuel future growth plans.
Meanwhile, Vodafone Idea is in talks with lenders to raise the new debt as the company tries to get back on track in a challenging telecom market.