Bharti Airtel and Vodafone Idea (Vi), two India-listed private telecoms companies, performed well on the exchanges on Friday’s close. The shares of both telecom companies are trading relatively lower compared to what they were a few months ago.
Bharti Airtel shares closed at Rs 671.20 which is 1.67% higher than the previous close of Rs 660.20. Airtel share touched a daily high of Rs 675.70. An increment of 10 rupees in one day is something Airtel is happy to take.
Vodafone Idea stock closed at Rs 8.75 which is 2.34% higher than the previous close of Rs 8.55. Before closing at Rs 8.75 on Friday, the stock touched a daily high of Rs 8.80.
Vodafone Idea shares benefited from approval of capital increase and deferral of AGR
Vodafone Idea’s board of directors has announced that it will raise Rs 436 crore from its current largest promoter – Vodafone Group UK. In addition, the Board of Communications said it will choose to defer the related AGR (Adjusted Gross Revenue) accruals of Rs 8,837 crore.
The said amount will be paid by the telecom in six installments after March 31, 2026. Moreover, the transfer of shares to the government in the telecom should take place soon which will help Vi in clearing the interest accruals of up to Rs 16,000 crore.
Bharti Airtel’s business performance has been impressive for the past two years. The carrier has been constantly adding new active mobile subscribers, and its average revenue per user (ARPU) is the highest in the industry. Airtel is expected to benefit from future tariff increases and the telecom company has seen growth in subsidiaries including broadband, internet banking (Airtel Payments Bank), Nxtra (data center business) and more.
Airtel and Vodafone Idea (Vi) will want to maintain continued momentum and increase the share price for users. However, Monday is a long way off and no one knows for sure how telecom stocks will perform in the new week.