Shares of telecom company Voda Idea, which is struggling with financial problems, are still about 59 percent below the one-year high, but the bullish trend of global brokerage firm Citi Research remains on it. When the Department of Telecom gave relief from bank guarantee, Voda Idea shares got strong support. Due to this, Citi has also maintained a bullish trend on telecom sector tower company Indus Towers. Today Voda Idea shares closed at Rs 7.94 (Voda Idea Share Price) with a rise of 2.19 per cent, while Indus Towers shares closed at Rs 341.70 (Indus Towers Share Price) with a rise of 0.46 per cent.
Voda Idea will now find it easier to raise loans
Voda Idea on Saturday said the Telecom Department has waived the condition of submitting bank guarantee for the spectrum acquired through auctions held in 2012, 2014, 2015, 2016 and 2021. Voda Idea says this will boost 4G and 5G investment in India. If this relief was not available, Voda Idea would have had to give a bank guarantee of Rs 24,800 crore and Voda Idea was not in a position to give it. According to the city, due to this the company was also facing difficulties in raising loans.
What is the target price for investment?
Citi has kept Voda Idea at high risk but has also given bullish rating and fixed the target price at Rs 13. This target price is about 65 percent upside from the current level. According to the brokerage, if we talk about Indus Towers, it will also get help from the relief from the Telecom Department and it will have to be monitored if there is any progress in the debt funding of Voda Idea. Citi has fixed the target price of Rs 485 for Indus Towers, which is about 41 per cent upside from the current level.
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