Shares of Vodafone Idea surged approximately 4% following reports confirming the telecom giant’s completion of its 5G rollout obligations across all circles in India.
According to sources cited by CNBC Awaaz, Vodafone Idea has successfully implemented its 5G spectrum in 17 circles and fulfilled the rollout requirements across both allocated spectrum bands.
The Department of Telecommunications conducted network testing, validating Vodafone Idea’s compliance with the rollout obligations.
The company managed to meet these requirements despite facing penalties amounting to around Rs 1 crore for any delays, underscoring the critical nature of adhering to license terms. Failure to meet these obligations could have resulted in severe repercussions, potentially leading to the cancellation of Vodafone Idea’s 5G spectrum rights. The telecom operator had a deadline set for August 15, 2024, to complete these obligations.
Earlier this week, Vodafone Idea made headlines by divesting an 18% stake in Indus Towers for €1.7 billion (approximately Rs 15,300 crore).
The company plans to utilize a significant portion of these proceeds to repay €1.8 billion in outstanding bank borrowings secured against its Indian assets, demonstrating a strategic move towards debt reduction and financial stability.
Vodafone Idea recently concluded a successful Follow-on Public Offer (FPO), raising Rs 18,000 crore, alongside an additional Rs 2,075 crore through a promoter group entity, aggregating to a total equity fundraising of Rs 20,000 crore. This financial maneuver aims to strengthen the company’s financial position amidst persistent pressures from lenders related to past loans.
As of 2:10 PM, Vodafone Idea shares were trading 3.75% higher at ₹17.15 on NSE.
