After The Government Announced Relief Measures, Vodafone Idea's Stock Rose Over 30%.
Stocks in Vodafone Idea: Vodafone Idea, the country's third-largest telecom operator, saw its stock rise as much as 28% to an intraday high of 11.47.
Vodafone Idea, the country's third-largest telecom provider, soared as much as 30% to an intraday high of 11.47 a day after the government unveiled cash-strapped telecom sector relief measures.
The Union Cabinet, led by Prime Minister Narendra Modi, has announced a four-year moratorium on telecom operators' pending adjusted gross revenue (AGR) dues, providing much-needed respite to companies like Vodafone Idea and Bharti Airtel.
The government also revised the definition of AGR, which has been a point of conflict between telecom corporations and the telecom department, as well as a major source of stress in the industry.
According to the telecom department, Bharti Airtel, Vodafone Idea, and Reliance Communications owing the government approximately 92,000 crores in licence fees and 41,000 crores in spectrum usage costs.
As part of a comprehensive telecom reform, the government permitted 100 percent foreign direct investment (FDI) in the telecom sector through the automatic method. "The cabinet approved 100% FDI in telecom via the automatic method," telecom minister Ashwini Vaishnav said while briefing media on the cabinet's choices.
According to Nomura, IDFC First Bank, Yes Bank, and IndusInd Bank all gained between 2 and 8% on the BSE, with respective exposures to Vodafone Idea of 3%, 2.4 percent, and 1.7 percent of their loan books.As of 12:49 pm, Vodafone Idea was up 27.66 per cent at ₹ 11.40, outperforming the Sensex which was 0.24 per cent.