Shares gain high: On Thursday, amid continuous fluctuations in the stock market, the benchmark Sensex fell 427 points and closed at 84,818. During this period, five stocks of BSE 500 reached new high levels of 52 weeks. These stocks had touched their old high levels last year and on Thursday these stocks achieved new high levels. These breakouts usually show bullish momentum and indicate further gains in the short-term. Let’s take a look at these explosive stocks:-

These stocks did wonders

Esab India- The new 52-week high level of small cap company Esab India is Rs 6417.55. The current price of shares is Rs 6300. The stock has increased by about 20 percent in the last one month.

Samvardhana Motherson International- Shares of automotive stock Samvardhana Motherson International also gained on Thursday. Its new high level of 52 weeks is Rs 120.2. Whereas its market price is Rs 119.8. The stock has risen by about 14 percent in the last one month.

Vodafone Idea- The performance of shares of telecom company Vodafone Idea was also quite good on Thursday. With this, it has touched the new 52-week high level of Rs 11.3, while the market price is Rs 11.25. The stock has increased by about 10 percent in the last one month.

Eicher Motors- The new 52 week high level of Eicher Motors is Rs 7324. The stock has increased by about 6 percent in the last one month.

Cummins India-The new 52 week high level of the share is Rs 4588.1. The stock has increased by about 3 percent in the last one month.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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Vodafone Idea: New York equity firm Tillman Global Holdings (TGH) can invest $ 4-6 billion (about Rs 35,000-52,800 crore) in debt-ridden telecom company Vodafone Idea Ltd and take over its operational control. After this news came out, the shares of Vodafone Idea Ltd rose by 5 percent on Monday.

Investment dependent on relief package

According to the report of Economic Times, people familiar with the matter gave this information. However, this investment is dependent on the relief package given to the company by the Government of India, which includes AGR and spectrum related dues. With this, Vodafone Idea shares rose 5.26 percent to a high of Rs 9.19 on BSE today. The stock has gained 36.46 percent in the last three months.

Company will become promoter

Quoting a source, Economic Times reported that if this deal happens, TGH will take the status of promoter in the company and will take control from Aditya Birla Group and Vodafone’s UK unit. The government, which is currently the largest shareholder of the company with 49 percent stake, will remain a passive investor.

The Economic Times quoted a source as saying that if the deal goes through, TGH will take over as promoter and existing promoters Aditya Birla Group and the UK report also said that the New York-based investment firm is not seeking complete waiver of dues, but is seeking restructuring of liabilities to ease operations. TGH has submitted a detailed proposal of terms and conditions to the government.

Company under debt burden

If the government gives relief package to Vodafone Idea, then the deal will be finalized in a few months. Let us tell you that AGR of Rs 83,400 crore is outstanding on telecom company Vodafone Idea. The company has to pay about Rs 2 lakh crore towards interest and penalty. In such a situation, if there is no relief from the government, the company may go bankrupt.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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Vodafone Idea Shares: Shares of telecom company Vodafone Idea jumped by 9 percent today. There is a reason for this rise in the company’s shares. Actually, today the petition related to AGR dues of the company was heard in the Supreme Court. In this, the company had demanded cancellation of the Additional Adjusted Gross Revenue (AGR) demand imposed by the Department of Telecommunications (DoT).

Since this matter falls within the scope of government policy, the Supreme Court has allowed the government to reconsider the company’s petition. This decision of the court is no less than a ray of hope for the company which is burdened with debt. This may help Vodafone Idea to maintain its operations and attract new investment.

What is the matter?

This debt-ridden company had challenged the Department of Telecommunications (DoT)’s new demand of Rs 5,606 crore for the financial year 2016–17. The company had argued that any new demand related to AGR is not justified because the liabilities related to it have already been decided in the decision of the Supreme Court in 2019. AGR i.e. Adjusted Gross Revenue is that part of the earnings on which companies pay license fees and other charges to the government.

Earlier the fees were paid only on the network, but in 2019 other parts like bank interest or income from sale of property were also added to AGR. Due to this, huge dues were accumulated on the companies and there was a tussle between the government and the telecom companies. By relaxing the rules in 2021, non-telecom income was excluded, thereby reducing the burden on companies.

AGR outstanding burden on companies

Earlier in 2020, the court had asked the telecom companies to pay their dues AGR, which totaled Rs 93,520 crore. Giving a time of ten years, the court ordered that 10 percent of the outstanding amount has to be paid by March 31, 2021 and the remaining amount has to be paid from April 1, 2021 to March 31, 2031. The court also made it clear that the outstanding amount will not be re-evaluated. On this, Vodafone Idea had appealed for re-review of the AGR calculation of 2016-17, saying it was wrong, for which the court has given permission today.

Shares jumped due to court decision

The effect of this decision of the Supreme Court was visible on the shares of Vodafone Idea. In early trade, the stock opened with a decline of 2 percent. At the same time, with the court’s decision, it saw a rise of about 9 percent. Within no time, it rose by about 11.4 percent on NSE to reach its 52-week high of Rs 10.52.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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The Government of India is soon going to increase its stake in Vodafone Idea (VI) to 48.99 percent. This increase is being done under the decision to convert spectrum outstanding amount into equity share. Let us tell you, this step is part of the telecom sector relief package announced in September 2021.

Government will get 36,950 crore shares

On March 30, Vodafone Idea shared information that equity shares of 36,950 crore would be issued to the Government of India. The telecom ministry issued an order in this regard on 29 March, under which these shares will be transferred to the government under Section 62 (4) of the Companies Act, 2013.

Share transfer process will be done within 30 days

The government will get 3,695 crore equity shares at an issue price of Rs 10 per share. This issue price has been fixed on the basis of the last 90 trading days or the volume-weed average price of the last 90 trading days or 10 trading days, so that under the Section 53 of the Companies Act, the share is not issued below the minimum price.

The company will now have to complete this process within 30 days. However, it will depend on the approval of SEBI (Securities and Exchange Board of India) and other regulatory institutions.

Will the control of the company change?

After this deal, the government’s stake will increase from 22.60 percent to 48.99 percent. However, the promoters of Vodafone Idea will continue to control the company. Vodafone Idea said, “We will take all the steps required to complete this process, so that it can be implemented as soon as possible under regulatory approval.”

Growing stake and impact on telecom sector

With this decision, the government’s grip in the telecom sector of India will be stronger. This will provide financial relief to Vodafone Idea, so that it will be able to invest in 5G network and other infrastructure development. Now everyone’s eyes are on how Vodafone Idea handles this stake transfer and will it be able to give the company a new place in the market?

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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