Vodafone Idea shares surge 19%. Here's why | Economic Times

New Delhi: Shares of Vodafone Idea surged as much as 19 per cent in early trade on Friday after the government decided to amend the income tax law to do away with retrospective taxation. Finance Minister Nirmala Sitharaman introduced The Taxation Laws (Amendment) Bill, 2021 in the Lok Sabha on Thursday to withdraw tax demands made using a 2012 retrospective legislation on indirect transfer of Indian assets prior to May 28, 2012.Shares of Vodafone Idea rallied 19 per cent to Rs 7.04 on Friday, before trading at Rs 6.87 at 10.08 am. BSE Sensex was trading 117.45 points, or 0.22 per cent, higher at 54,610.29 at the same time. The scrip settled at Rs 5.94 on Thursday.According to the bill, it is also proposed to refund the amount paid in these cases without any interest.Also, lenders to Vodafone Idea are discussing a plan to swap their debt for equity which would significantly dilute the stakes of the firm’s promoters, Vodafone PLC and the Aditya Birla group, media reports suggested.Prior to this, Vodafone Idea shares had nosedived 45 per cent within a week on the back of multiple negative news and bleak chances to continue as an existential concern.On Wednesday, billionaire industrialist Kumar Mangalam Birla stepped down as the non-executive director and non-executive chairman of the board of Vodafone Idea.In June, Birla had offered to give away his holding in the joint venture with Britain's Vodafone to any public or private sector entity. The billionaire businessman had made the offer in June in a letter to Cabinet Secretary Rajiv Gauba.Last month, the Supreme Court of India had rejected petitions by telecom companies, including Vodafone Idea and Bharti Airtel, for rectification of alleged errors in calculation of adjusted gross revenue (AGR) related dues payable by them.