0

0

0

0

0

0

0

0

0

This article is more than 3 month old.

Vodafone Idea, Airtel surge after DoT reached out to telcos

Mini

Telecom stocks surged after govt announced the contours of the relief package. The shares of Vodafone Idea, Bharti Airtel, Indus Towers rose as much as 10, 5, and 6 percent, respectively.

Vodafone Idea, Airtel surge after DoT reached out to telcos
Telecom stocks surged Wednesday after the telecom department (DoT), along with the finance ministry, reached out to telcos, sharing the contours of the equity conversion formula as part of the wider relief package.
In a letter, the DoT asked companies whether they want a four-year temporary prohibition (moratorium) on aggregated gross revenue (AGR) dues and spectrum dues. It also sought to ask whether they would prefer to convert the interest to equity. DoT also said the scheme is optional for telcos and that they can choose not to participate in it.
The stocks surged on the news, with Vodafone Idea, Bharti Airtel, Indus Towers rising as much as 10, 5, and 6 percent, respectively. The shares of Vodafone Idea, the debt-laden telco, is trading over 4.5 percent higher at Rs 10.45. The scrip had risen to the intraday high of Rs 10.92.
Indus Towers was trading over 1.5 percent higher at Rs 300, having risen to Rs 313 earlier. Bharti Airtel is also surging nearly 4 percent higher on the news. The scrip had earlier risen to the intraday high of Rs 713.


Earlier when the cabinet had approved a relief package for the sector, it had said there will be a four-year moratorium for AGR and spectrum dues. And the interest on these dues can be converted to a loan.
Last week, a report by Moneycontrol said the chairman of Aditya Birla Group and the former chairman of Vodafone Idea, Kumar Mangalam Birla would infuse equity into the company. Mangalam may also sell a part of his stake in VI to Indus Towers, a report in Economic Times said. Indus Towers is a company that deals in infrastructure services to telecom operators.
next story