Vodafone Idea shares surge 7% in a sharp spike; Citi calls it a 'high-risk' buy

Shares of Vodafone Idea Ltd. have seen a sharp recovery from the lows of the day on Tuesday, September 23. The stock has surged as much as 7%, after a sharp, sudden surge in the last few minutes.

There is no immediate trigger that has been attributed to the sharp spike seen in the stock.

This is the third instance in the last four trading sessions that the stock has gained. The stock has also risen in eight out of the last 12 trading sessions.

Vodafone Idea's shares saw a sharp surge last week after the Supreme Court agreed to admit the company's petition with regards to some of its AGR dues.

The government's view during the hearing last Friday was that it does not oppose Vodafone Idea's AGR plea, but some solution needs to be found as it also is an equity holder in the company. The matter will now be heard on Friday, September 26.

Some of Vodafone Idea's dues were converted to equity, taking the government stake to 49% in the debt-laden telecom operator, making it the largest shareholder in the company.

Multiple officials of the telecom ministry, including Telecom Minister Jyotiraditya Scindia have mentioned in the past that there is no intention on the government's part to increase its stake in Vodafone Idea past 49%.

On Monday, brokerage firm Citi called Vodafone Idea's shares a "high-risk" buy, ascribing it a price target of ₹10.

The brokerage wrote in its note that the Supreme Court has admitted Vodafone Idea's latest AGR plea and with the government also expressing its support, the chances of a potential relief for the company have increased.

Shares of Vodafone Idea are now trading 5.1% higher at ₹8.81, having made an intraday high of ₹8.97. In line with Vodafone Idea, shares of Indus Towers have also seen a spike from the lows of the day, and are currently trading 0.6% higher at ₹358.