Shares of Vodafone Idea rallied over 27 per cent to hit a fresh 52-week high of Rs. 12.85 on NSE on Thursday after news reports that Amazon Inc and Verizon are set resume talks to pick up a significant stake in the cash-strapped telecom company.
According to news reports, the stake sale talks between the US tech giants and Vodafone-Idea was paused awaiting the Supreme court verdict on staggered payment of government dues.
On Tuesday, the Apex court gave telecom companies 10 years to pay a total of Rs. 1.4 trillion in dues, which came as a major repreive to the struggling telecom player and also paved way for the resumption of talks.
Of the total dues payable to the government, Vodafone-Idea alone owes around Rs. 51,000 crore including licence fee, spectrum charges, interest and penalty. It has already paid Rs. 7,854 crore.
The stocks which opened at Rs. 10.50 apiece, were hovering around the same range till the first of half of the day. It breached the Rs.11 after 1 PM and went on to cross Rs.12 range at 2.30 PM and scaled new high of Rs. 12.85 at the close of market.
With the company’s Board meeting on Friday to decide on fundraising plans, the stock saw heavy buying activity till the time of market closure.