Vodafone gets connected

about 1 year ago
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Vodafone Idea is having a good run since yesterday and today is also looking good. The stock rose over 1.35% to Rs.11.25, not too far from its 15% UC of the day at Rs.11.39. Its 52-week high is at Rs.12.62.

The stock has spurted up today on unconfirmed news report that US wireless carrier, Verizon and Amazon might invest more than $4 billion for a stake in the company.

The stake-sale news had been on earlier but was put on pause on account of the AGR. But now with that uncertainty out of the way, the news is that Verizon and Amazon are back on the negotiating table.

The underlying good news here is that the fears of bankruptcy have been put to rest. The company has paid off Rs.7850 crore owed to the Govt and needs to cough up another Rs.50,000 crore. And if these stake sales happen, the company can survive, preventing an unhealthy duopoly in the sector.

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