Vodafone Idea Limited witnessed a 6.96% surge to a session high of ₹7.99 per share on Monday after the Department of Telecommunications (DoT) waived the requirement for submitting financial bank guarantees for the spectrum acquired by the debt-laden telecommunication company.
The waiver applies to the spectrum acquired in the auctions that were held in 2012, 2014, 2015, 2016, and 2021, subject to specific terms and conditions. Vodafone Idea received this communication from the Department of Telecommunications on December 27, 2024.
Earlier, the company had to provide bank guarantees aggregating to ₹24,800 crore for each spectrum installment, 13 months prior to the due date. After the DoT’s waiver notice, the company, in an exchange filing, confirmed that no bank guarantees would be needed for the auctions of the years mentioned herein.
However, a one-time partial shortfall is remaining for the 2015 auction and the company is discussing the finalisation of the amount with the DoT.
In the exchange filing, Vodafone Idea stated, "This move to waive bank guarantees underscores the government’s ongoing support for the telecom sector and enables telecom operators to redirect banking resources toward expanding 4G and 5G networks in India."
At 3 PM on Monday, the shares of Vodafone Idea Limited are trading with 4.15% gains at ₹7.78 per share as compared to the previous close of ₹7.47 per share on the National Stock Exchange.
Summary:
Shares of Vodafone Idea Limited saw a 6.96% surge on Monday after the Department of Telecommunications (DoT) waived the requirement for submitting financial bank guarantees for the spectrum acquired by the company.
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