Debt-ridden telecom operator Vodafone Idea's (Vi) shares bounced back on Friday to break a four-day losing streak that had taken away 28 percent of their value. The rebound in the Vi stock came after the government moved to amend a law that would nullify retro tax demands from businesses.

Share Market Live

NSE

On Thursday, the government introduced a bill in the Lok Sabha that would bury retrospective tax by amending the Income Tax Act. Now, no retro tax will be applicable for indirect tax transfer of Indian assets made before May 28, 2012.

The new legislation is expected to benefit companies like Vodafone that are battling arbitration cases due to the law, as it seeks to withdraw retrospective amendments to the law that had raised demands on businesses.

Also read:

Glenmark Life Sciences lists at Rs 750 on NSE at a premium of 4%

In late afternoon deals, the Vi stock was up 20.37 percent at Rs 7.15 apiece on BSE, having surged as much as 23.73 percent earlier on Friday.

The Vi stock was the top gainer in the BSE 500 index -- the broadest gauge on the bourse -- throughout the session.

Vodafone Idea shares have been in a tailspin this week since Aditya Birla Group chairman Kumar Mangalam Birla offered to sell his ownership in the company to a government entity.

Vodafone CEO Nick Read ruled out any further equity infusion in the company. While Read acknowledged that Vi is going through tough times, he clarified that Vodafone Group Plc has no plans to infuse equity to keep it afloat, Business Standard reported.

Also read: Coforge tumbles as promoter likely offloads stake in block deal

At Thursday's close, Vodafone Idea shares are down 44.17 percent so far this year.

The country's telecom space has been marred with breakneck competition wherein heavily indebted players are seeking relief in their adjusted gross revenues (AGR)-related dues owed to the telecom department.