Vodafone Idea reaches 30-month high, 450% return in 4 months, know the reason

Vodafone Idea Share Update: On the first trading day of the week also, Vodafone Idea’s stock saw a 10 percent jump and was trading at Rs 15.85 per share. However, the stock had to bear the brunt of the weakness in the market and at the time of closing of the market, Vodafone Idea closed at Rs 15 with a gain of 3.81 percent.

450% return in 4 months

But this is the highest level of Vodafone Idea’s stock in the last 30 months. If we look at the data, Vodafone Idea’s stock has jumped more than 50 percent in the last 11 trading sessions. So in the last four months, the company has given a return of 450 percent to its investors. Vodafone Idea had hit a low of Rs 4.55 in August, when Kumar Mangalam Birla resigned as Vodafone Idea chairman.

Bailout package, impact of tariff hike

But one after the other, good news kept coming for Vodafone Idea, due to which the stock has seen a boom. First, the government announced a Wellout package to lift telecom companies, especially Vodafone Idea, from the crisis. After this, from November 25, Vodafone Idea increased the prepaid mobile tariff by 20 to 25 percent. Now the Department of Telecom has returned the bank guarantees given to the telecom companies under the bailout package which they had to pledge against spectrum charges and license fees. So that if a company is not able to pay these charges, then the Department of Telecommunications can encash these bank guarantees.

bank guarantee back

In lieu of these bank guarantees, the telecom companies had to pay hefty interest to the banks. The Telecom Department has returned the bank guarantee of Rs 9200 crore to the three telecom companies. In which Rs 4,000 crore to Bharti Airtel, Rs 2700 crore to Reliance Jio and Rs 2500 crore to Vodafone Idea. But Vodafone Idea is going to have the biggest advantage of returning the bank guarantee because it will reduce the bank’s debt burden on the company. These steps are expected to benefit Vodafone Idea and help the company come out of the financial crisis.

Application for settlement of tax dispute

The biggest relief of the company is that Vodafone Group, the parent company of Vodafone Idea, has applied to the government to settle the dispute of restrospective tax of Rs 20,000 crore. Experts believe that Vodafone Idea can benefit from this.