IDEA

Vodafone Idea shares surged more than 10 percent during intra-day trading on Monday following reports that parent company Vodafone Group Plc is exploring measures to strengthen the financially stressed telecom operator’s capital base. According to the report, Vodafone Group, which owns nearly 19 percent in Vodafone Idea, is considering transferring a portion of its stake to the Indian telecom company as treasury shares instead of injecting fresh capital into the business. The stock eventually closed at Rs 12.19 per share on the NSE, marking a gain of 8.45 percent. During the trading session, the share price climbed as much as 10.58 percent to touch an intra-day high of Rs 12.43 per share. Vodafone Idea may later monetise these treasury shares to raise additional funds for clearing government dues and supporting future expansion plans. Currently, the Government of India is the largest shareholder in Vodafone Idea with nearly a 49 percent stake, while the Aditya Birla Group also holds a minority stake in the company. Over the past one year, Vodafone Idea shares have rallied around 68 percent, taking the company’s market valuation to nearly Rs 1.08 lakh crore.