Vi shares jump 10 per cent on equity infusion report

Shares of Vodafone Idea Ltd. jumped the most in over four months on Wednesday after a report said that it plans a significant equity infusion to revive business.

The company plans to issue $1.7 billion or Rs 14,000 crore in new shares, the Economic Times reported. Existing promoters Aditya Birla Group and U.K.’s Vodafone Group Plc will infuse half of the overall amount, the report said.

A Vodafone Idea’s spokesperson declined to comment on BQ Prime’s text queries.

Shares of Vodafone Idea surged 10.13% intraday, the most since Feb. 6, before paring gains to trade 6.10% higher as of 9:48 a.m., compared to an almost unchanged Nifty 50.

The average traded volume so far in the day stood at 9.4 times its monthly average. The relative strength index was at 73, implying that the stock may be overbought.

Of the 19 analysts tracking the company, one maintains a ‘buy’ rating, three recommend a ‘hold’ and 15 suggest a ‘sell’, according to Bloomberg data. The average of 12-month price targets implies a potential downside of 35%. Bloomberg