Shares of Vodafone Idea surged as much as 10 per cent in Tuesday’s intraday trade after the reports surfaced claiming fresh investment in the company. The surge in stock price comes amid news that American MNC Amazon could invest Rs 20,000 crore in the beleaguered telecon company.
Speaking about the spike in share price of Vodafone Idea, Zee Business research analyst Kushal Gupta said that the stock has been reacting to the development for the past three days. It is learnt that many PE investors, including Amazon, may pump in whopping Rs 20,000 crore in the telecom company, he said.
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As per Kushal, the focus on Vodafone Idea from investors has been due to the recent support from the government to the company.
He said that even the company’s CEO last week has also hinted that Vodafone Idea is almost about to close the fundings from probable investors.
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This will also help Vodafone Idea to create a huge corpus to compete in the 5G spectrum auction, alongside Airtel and Jio. US tech giant has already funded Airtel and Reliance Jio for the 5G auction.
Meanwhile, Vodafone Idea continues to grapple with subscriber loss. As per the TRAI report, the telecom company lost 4.7 million subscribers in the first three months of 2022. The telco lost nearly 23 million subscribers during fiscal year 2021-22.
At 12.10 pm, shares of Vodafone Idea were trading higher by more than six per cent to Rs 9.88 per share on the BSE on Tuesday.
