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Vodafone Idea share price opened with an increase today

Vivid News 24: The Vodafone Idea share price has been on the rise since the morning as a result of relief from the Government of India (GoI) over the payment of AGR dues. The share price of Vodafone Idea increased today after an upbeat start, reaching an intraday high of $8.55 a share and recording a 25% increase over Monday morning deals.

The decision by the company to convert the NPV of the interest related to deferring spectrum auction installments and AGR Dues into equity shares to be issued to the Government of India has caused the Vodafone Idea share rally, in the opinion of stock market experts, to be entirely short term sentiment.

They claimed that the increase was entirely speculative because the value of the company’s equity shares would soar by close to 50% following this debt conversion into equity participation. They added that since the corporation has been losing money continuously, such efforts are ineffective because they won’t alter the company’s foundations.

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Avinash Gorakshakar, Head of Research at Profitmart Securities, commented on the jump in the price of the Vodafone Idea share “Converting AGR obligations into equity would increase the company’s equity share capital, which would reduce its earnings per share (EPS) (Earning Per share).

The decision won’t help to change the state of the company’s fundamentals, therefore the current surge is only temporary and speculative. Since Vodafone Idea has consistently shown losses, purchasing the stock merely because it has moved sharply upward today wouldn’t be a prudent choice. My recommendation is to look at such high-quality shares since there are better telecom firms on the market.”

Shareholders of Vodafone Idea hold the stock, Vice President of Research at IIFL Securities, Anuj Gupta, stated: “The price of Vodafone Idea shares has provided a news-based breakout over levels of $7.50 per share, and it now faces a barrier at levels of $9 per share.

If it succeeds in getting through this obstacle, it might go to levels 10 and eventually 12. Therefore, owners of this stock may continue to hold it while keeping their stop loss at $7.50 levels. I would advise novice investors to purchase only when the price closed over the $9 per share level. Above 9, one can purchase the stock with targets of 10 and 12, but rigorous stop loss maintenance at 7.50 level is required.”

Vodafone Idea informed the Indian stock exchanges of the relief in AGR dues repayment on Friday, saying, “To issue the Government of India equity shares by converting the net present value (NPV) of the interest connected to the postponement of spectrum auction installments and AGR Dues. Rs. 16133, 18, 48,990 will be converted altogether into equity shares. 1613,31,84,899 equity shares with a face value of 10 rupees each must be issued by the company for 10 rupees per share.”

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Vishnu Soni
Vishnu Sonihttps://vividnews24.com/
I am working at NewsMarkets24 Network for the last several years, I learn a lot of things here like News editing, News writing, and how to manage my team to maintain our goals. My job does not only give me experience but also helps to shape my person for success.
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