Vodafone Idea: Vi hits new 52-week high as Tata Capital invests Rs 500 cr via bonds; should you buy?

Vodafone Idea Share Price: Vodafone Idea is in focus today (Monday, December 22) after a report claimed that Tata Capital and several others have participated in the fundraise by Vi's wholly-owned subsidiary Vodafone Idea Telecom Infrastructure Limited (VITIL). Post this news, Vodafone Idea shares went on to make a new 52-week high of Rs 12.11 on NSE in early morning deals.

Around 11:30 AM, Vi shares traded 0.42 per cent higher at Rs 12.01 with 67 crore equities changing hands. Today is the third day of consecutive gains and the counter currently trades higher than all the key moving averages .

According to an Economic Times report, Tata Capital, the flagship financial services arm of Tata Group, has committed around Rs 500 crore in Vodafone Idea’s latest bond issue. The ET report further said that JM Financial Credit Solutions, birla-capital-abcapital-share-price-stockdetail-242461" target="_blank">Aditya Birla Capital and Hero Fincorp have invested about Rs 400 crore each. The Nomura Capital also participated in both tranches of bond sale through its NBFC arm and foreign investor route.

The report said that VITIL's bond issue saw interest from mutual funds and foreign investors as well.

Last week, Vodafone Idea announced that VITIL has completed a Rs 3,300 crore fundraise by issuing non‑convertible debentures (NCDs). The bond sale was structured in two secured tranches. The Series A comprised of Rs 3,000 crore with a coupon rate of 12 per cent. On the other hand, the Series B of Rs 300 crore carried a coupon rate of 7 per cent.

The securities have a maturity period of about 21 months and come with a call option exercisable after one year.

According to a statement by Vodafone Idea, the proceeds will be used by VITIL to repay its payment obligation to Vodafone Idea, adding that this will enable the telecom operator to bolster its capex and support business growth.

Commenting on the performance of Vodafone Idea shares, Rajesh Palviya of Axis Securities, has said that a revival of buying interest is seen in Vodafone Idea over the last few weeks. The chart of Vodafone Idea is looking very promising.

"The daily chart of Vodafone Idea is showing a rounding bottom pattern which signals a bullish reversal. On the weekly chart, Vodafone Idea is showing higher highs and higher lows formation for the third straight week," he said.

"Definitely a fresh buying interest is visible in Vodafone Idea on the lower levels. As long as Vodafone Idea is able to defend the levels of Rs 11.20-11.25, my view is that the currently uptrend could continue and the stock can show the levels of Rs 13.50 to Rs 14 very soon," the analyst added.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)