Vodafone Idea share prices surge 38% in last 4 days; Know why the prices are going up

Shares of telecom giants Vodafone Idea (VIL) opened higher for the fourth day in a row on Tuesday. VIL's shares hit a new 31-month high of Rs 15.24 on Monday and kept the high run on for Tuesday’s opening. Following the market opening, the shares have fallen by 2.6% on the BSE. However, it is noteworthy that the Vodafone Idea shares surged almost 40% in the past four days.

Monday’s surge of the shares saw the company rise almost 240% from its 52-week low level of Rs 4.55, which the company recorded on August 5, 2021. Meanwhile, the recent surge run of the company’s shares has been caused by a report suggesting that the Department of Telecom (DoT) released bank guarantees of around Rs 9,200 crore of telecom companies which were deposited for license fees and spectrum usage charges. The release of funds was done as part of the reform package announced by the government in September.

Based on the report, a guaranteed amount of around Rs 2,500 crore has been released for Vodafone Idea. This comes after Vodafone earlier filed an application with Indian authorities for settlement of their retrospective tax dispute. Meanwhile, VIL has zoomed a total of 53% in the past 11 days after it announced the increase in its tariff by 20-25% from November 25, 2021. The company had also announced moves to increase its customer base, which caused a sudden rise in demand for the company’s stocks.

Earlier in November, Vodafone Idea conducted 5G trials in the cities of Gandhinagar and Pune, which also caused a demand in the company. The DoT has so far allocated the 26GHz and the 3.5GHz spectrum to Vodafone Idea for demonstrating the use cases and conducting trials of the 5G network. 

Vodafone Idea share price history

VIL shares opened on Tuesday, December 7 at Rs 15.16 which was only a fraction lower than the company’s previous 52 week high. However, the share price has since fallen and was trading at Rs 14.57 at 12:00 pm. Although the price has fallen by more than 2% from its day’s opening value, the shares are still being traded at a high as compared to their position last week.

Image: PTI/ SHUTTERSTOCK