Vodafone Idea shares surged as much as 20 percent to Rs 13.25 Wednesday as an overall recovery in the stock market lifted the stock already buoyed by the tariff hike cheer. The stock is trading close to the 52-week high of Rs 13.80 it hit in January 2021.

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The stock price surged to a ten-month high during the session. In the past five trading sessions, the VI stock price has rallied nearly 15 percent after the company increased prepaid tariff by 20-25 percent, with effect from November 25.

At 15:15 IST, the stock price was trading 14 percent higher at Rs 12.65 on the Bombay Stock Exchange. In comparison, Sensex, the benchmark index was up over 1.15 percent to 57,772. Its combined trading volume surged to 83 crores, up from 44 crores on Tuesday. The volumes also crossed the monthly average of 34 crores.

Earlier last week, Vodafone Idea had hiked its prepaid tariffs by 20-25 percent, following Airtel's move. The move aimed to increase the average revenue per user (ARPU) of the telecom players as the industry strives to ease its debt burden.

The telecom industry has been laden with debt for the past two years on account of expensive spectrum payments and regulatory dues. The government in its September relief package tried to lessen that burden by offering the telcos a moratorium on the payment of the aggregated gross revenue or the AGR dues.

The Centre also removed the non-telecom revenues from the definition of AGR dues, which was a point of contest between the government and telecom companies from the time it was implemented. Many experts believed the relief package announced by the government offered a lifeline to the debt-laden Vodafone Idea.

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