After opening the day in green, share markets in India witnessed choppy trading activity throughout the day and are presently trading flat. Sectoral indices are trading mixed with stocks in the banking sector and stocks in the PSU sector trading in red. While stocks in the realty sector are trading in green.
The BSE Sensex is up by 16 points (up 0.1%) and the NSE Nifty is trading up by 15 points (up 0.1%). Meanwhile, the BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 0.7%. The rupee is trading at 64.20 to the US$.
In news from stocks in the telecom sector. Idea Cellular share price is in focus today after the company’s board approved a qualified institutional placement (QIP) of its shares.
The company’s board approved the issuance of equity shares worth up to Rs 35 billion by the way of a QIP to eligible investors.
This follows Idea’s announcement earlier this year to grant an in-principle approval for issuance of further equity to the tune of Rs 35 billion.
At a meeting on 30 January, shareholders of the company had given their approval for a QIP of up to Rs 35 billion.
Meanwhile, the promoters of Idea Cellular-Birla TMT, Elaine Investments, Oriana Investments-have already invested Rs 32.5 billion to strengthen its balance sheet amid intense competition and before a planned merger with Vodafone India Ltd.
Following this equity infusion by Idea’s promoters, their stake in India’s third-largest telecom operator will rise to 47.2% from 42.4% now.
The proposed capital raising by Idea, the sale of its standalone towers to American Tower Corp. and the potential sale of its 11.15% stake in Indus Towers Ltd will augment the firm’s long-term capital resources, Idea said in the statement on 4 January.
Companies in the debt-laden telecom sector have been witnessing a double whammy after the entry of Reliance Jio Infocomm Ltd which brought tariffs to rock-bottom and hit the revenue streams of other operators.
Leave A Comment