Vodafone Idea's shares rose by 6% following an increase in Emirates Telecom's stake in Vodafone Plc.
Emirates Telecommunications Group Co, also known as Etisalat, is a multinational Emirati telecommunications services provider.
Emirates Telecommunications Group Co (Etisalat) has increased its stake in Vodafone Group Plc, the holding company of Vodafone Idea, from 14 percent to 14.6 percent, with regulatory approval to take it up to 15 percent.
The share price of Vodafone Idea, India's third-largest telecom company, rose by 6 percent on April 26th as a result. Etisalat is reportedly exploring potential investment in Vodafone's African business, Vodacom Group Ltd, and discussing board restructuring with the British telecom group.
Vodafone Plc's shares have declined by around 29 percent in the past year, and it has yet to name a replacement for the ousted CEO Nick Read. Vodafone Idea saw a surge of 10 percent last week after the return of Kumar Mangalam Birla to the board as an additional director.
In February 2023, the Indian government announced it would acquire around a 33 percent stake in Vodafone Idea in lieu of interest payouts, reducing promoter shareholding to around 50 percent.
Vodafone Idea has lost around 33 percent of its market capitalization in the last year, declining 22 percent in the last six months. As of 12.23 pm, the Vodafone Idea stock was trading 4.76 percent higher at Rs 6.6, while the benchmark Nifty was up 0.13 percent at 17,792.75 points.