Vodafone Idea tanks 5% despite clarification on licence fee

NEW DELHI: Shares of Vodafone Idea fell 5 per cent in Friday’s trade, after a sharp 12 per cent rally on Wednesday, even as the telecom operator clarified it has paid its licence fee dues for the June quarter.

The stock has been under pressure of late as analysts believe Vodafone Idea’s liabilities are much higher than what its profit & loss (P&L) permits. They believe government support is a must for the debt-ridden operator to stay afloat. Out of 20 analysts tracking the stock, 9 have ‘sell’ rating, while 4 others have ‘strong sell’ rating on the telco. There are six ‘hold’ calls and just one buy call on the counter.