Vodafone Idea Shares Jump Nearly 14 Percent after Arbitration Win, Market Valuation Zooms Rs 3,563.86 Crore
Representative image REUTERS/Danish Siddiqui
Shares of Vodafone Idea Ltd zoomed nearly 14 per cent on Friday after Vodafone won the arbitration case against India over Rs 20,000 crore retrospective tax dispute. The stock jumped 13.60 per cent to close at Rs 10.36 on the BSE. During the day, it zoomed 14.91 per cent to Rs 10.48.
On the NSE, it gained 13.18 per cent to close at Rs 10.30. The company's market valuation rose by Rs 3,563.86 crore to Rs 29,769.86 crore on the BSE. Vodafone has won the arbitration against the Indian government over a demand for Rs 22,100 crore in taxes using retrospective legislation.
An international arbitration tribunal ruled that India's demand in past taxes were in breach of fair treatment under a bilateral investment protection pact. "The award is confidential but Vodafone can confirm that the tribunal has found (it) in Vodafone's favour," Vodafone Group said in a statement. "We are studying the lengthy documents and can make no further comment at this time." It was not immediately known if the Indian government will abide by the arbitration award.
In trading volume terms, 1300.05 lakh shares were traded at the BSE and 50.63 crore units on the NSE during the day.