Vodafone Idea Share: The stock had cracked nearly 21 per cent on Tuesday.New Delhi: Shares of Vodafone Idea on Wednesday surged nearly 13 per centin afternoon deals as the stock staged a comeback from Tuesday's crash.As of 1:02pm, Voda Idea was up 10.59 per cent at Rs 13.05.
The stock rose as much as 12.71 per cent to hit an intraday high of Rs 13.30.The shares had cracked nearly 21 per cent on Tuesday after its board approved a rescue plan that gives almost 36 per cent stake to the government in lieu of past dues and makes it the largest shareholder in the telecom operator.The restructuring in which some of the government dues will be converted to equity will result in dilution for all existing shareholders of the company including the founders, Voda Idea had stated.Once the process is completed, UK's Vodafone Group Plc will own around 28.5 per cent and Aditya Birla Group will have about 17.8 per cent in the company after the conversion.Vodafone Idea CEO stated that the government had made its position clear that it does not want to run the telco, and added that existing promoters are fully committed to managing and running its operations.The operator, which owes Rs 16,000 crore ($2.2 billion) to the Centre for spectrum and other dues, hasn't reported an annual profit since Reliance Jio sparked a brutal price war in 2016.Meanwhile, Voda Idea has been added to the futures and options (F-O) ban list by the National Stock Exchange (NSE).
A stock is put under the ban list when it has exceeded 95 per cent of the market-wide position limit and continues to remain banned until the position falls below 80 per cent.