Vodafone Idea Share Price Rises 35% Amid Google Investment Report

Vodafone Idea share price has hit the upper circuit in early trade today amid a report that technology giant Google was planning to buy 5 per cent stake in the debt-laden firm. Vodafone Idea is a telecom joint venture between Vodafone PLC of UK and Aditya Birla group. The share price of Vodafone Idea gained 20%. When compared on BSE, the previous close was Rs 5.82; it jumped to Rs 6.98. In the last five days, Vodafone Idea stock has gained 21.49%.

During the last one year, the mid-cap stock lost 51.7% but risen 4% since the beginning of this year 2020. In the previous week, the stock has gained 15.73%. In the last one month, the stock has seen a rise of 52%. 285.40 lakh shares of Vodafone Idea changed hands amounting to a turnover of Rs 18.87 crore on BSE. The market cap of the firm increased to Rs 19,683 crore.

The jump is being seen as part of Google's strategy to foray into India's booming mobile sector, following the footsteps of Facebook, which recently attained 10 per cent stake in Mukesh Ambani owned Jio Platform. Alphabet Inc's Google is looking forward to buying about 5% stake in Vodafone Idea Ltd, says the Financial Times reports as on Thursday.

"Amidst reports of Google picking up 5% stake in Vodafone Idea, it appears that the Indian telecom and online space is set to witness a spur of activity, which is always welcome. It would offer consumers a better deal and competition in this space is required as the digital space has gained massive importance post-COVID-19 and is set to witness multifold growth in coming years," said Aamar Deo Singh, Head Advisory, Angel Broking.