BofA raises Vodafone Idea's rating to 'Neutral' on tariff hike prospectsMoneycontrol • 1 day ago
BofA expressed increased optimism about the near-term momentum for the telecom sector, expecting tariff hikes to reach 20-25 percent compared to the brokerage's earlier projection of 10-15 percent
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The rally in Indus Towers was driven up improved collections, net tower additions and the fund-raise by Vodafone Idea.
ATC Telecom Infrastructure sold 144 crore shares at an average price of Rs 12.78.
Vodafone Idea shares worth Rs 2,000 crore exchanged hands in early trade.
The Rs 18,000 crore follow-on offer - India's largest ever - saw an overall subscription of seven times with institutional book being subscribed 19 times.
Vodafone Idea set a new record for volumes in a single stock, with over 400 crore shares being traded till now on the BSE and NSE combined on April 25. This figure bettered the previous record of 195 crore shares traded on April 24, again held by Vodafone
The company's FPO was subscribed 6.36 times by April 22, the final day of bidding, with investors bidding for 8,011.8 crore equity shares
MOIL touched a 52-week high on March 23.
Analysts also believe that Vodafone Idea may benefit from being a late entrant in the 5G market, learning from its bigger rivals that have already rolled out pan-India 5G networks
As per industry estimates, Vodafone Idea's dues to Indus Towers at about Rs 7,000 crore. The brokerage also notes that Vodafone Idea’s past dues settlement of Rs 5,700 Cr "could be worth an incremental Rs 21 per share."