Vodafone Idea up 8.5% after management’s clarification

Vodafone Idea clarified that the government will not take over the Telecom entity.

On Tuesday, its exercise of the option of converting the interest payable for the four years of deferment on the deferred spectrum installments and also on the AGR dues into equity sparked fears of government’s intervention among investors. On Tuesday, the stock plunged more than 20%.

However, on Wednesday, the company clarified that the government wants promoters to run the operations of Vodafone Idea. After this news the stock soared 8.5%. Right now, the stock is trading around Rs. 12.80