Shares of Vodafone Idea (VIL) jumped as much as 19.04 per cent to Rs 5 apiece on the National Stock Exchange (NSE) during the intraday trade on Thursday, extending their Wednesday’s 40 per cent rally on the bourse amid reports that the government is unlikely to invoke the telco’s bank guarantees as of now.
On the BSE, the stock climbed 18.85 per cent to Rs 4.98 in intraday session, extending to its 38.28 per cent surge on Wednesday.
However, it pared most of its day’s gains and eventually settled at Rs 4.40 apiece, up 4.76 per cent on the NSE and 5.01 per cent on the BSE.
This apart, VIL Chairman Kumar Mangalam Birla and Sunil Bharti Mittal, the head of Bharti Airtel met Finance Minister Nirmala Sitharaman at the North Block on Wednesday seeking some relief for the cash-strapped telecom sector. The meeting took place Wednesday evening and lasted nearly 40 minutes. The two telecom firm leaders, however, refused to divulge any details of the meeting.
In terms of trade volumes, over 13.61 crore shares were traded on the BSE during the day, while over 95.68 crore shares exchanged hands on NSE.
According to media reports, the government is unlikely to invoke bank guarantees of Vodafone Idea as of now. Encashing of bank guarantees may sound the death knell for companies such as Vodafone Idea which has been struggling to garner the dues.
A financial bank guarantee is equal to two quarters of licence fee and other dues. This amount could be in the range of Rs 5,000 crore each for Airtel and Vodafone Idea.
(with PTI inputs)
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