Vodafone Idea shares bounce back 9%

New Delhi: Shares of Vodafone Idea rallied nearly nine per cent on Wednesday after facing severe drubbing in the previous trade. The stock jumped 8.47 per cent to settle at Rs 12.80 on BSE. During the day, it gained 12.71 per cent to Rs 13.30. On NSE, it rallied 8.89 per cent to close at Rs 12.85.

Shares of Vodafone Idea (VIL) on Tuesday tumbled nearly 21 per cent after the debt-ridden firm announced converting about Rs 16,000 crore interest dues liability payable to the government into equity. A day after Vodafone Idea Ltd opted to convert interest on dues to government equity, its CEO on Wednesday said the government had made its position amply clear that it does not want to run the telco, and added that existing promoters are fully committed to managing and running the company's operations.

Vodafone Idea on Tuesday announced its decision to opt for converting about Rs 16,000 crore interest dues liability payable to the government into equity, which will amount to around 35.8 per cent stake in the company. If the plan goes through, the government will become the biggest shareholder in the company which is reeling under a debt burden of about Rs 1.95 lakh crore. VIL Managing Director and CEO Ravinder Takkar told reporters in a virtual briefing that there is no condition in the Telecom Department's letter on equity conversion option, which allows for board seats for the government.