Vodafone Idea’s fundraising deadline was December 31, but the company’s shares ended up rising on Monday.
Despite facing crises over the past few months, telecom company Vodafone Idea has seen its share price rise significantly in the past two trading sessions. On Friday and Monday, VI stock rose more than 30%.
Vodafone Idea shares jumped 10% on January 1, in the first market session of 2024. Before that, VI shares jumped more than 20% on Friday, leading to a cumulative gain of 30% over the two sessions recent market.
While VI shares have risen significantly over the past week, the company is awaiting a final call on its financing, a deadline of December 31 set by the Department of Telecommunications.
One of the key reasons for the growth in VI’s share price was the payment of ₹1,700 crore to the Department of Telecom last quarter to cover the spectrum it acquired in 2022, which inspired confidence. information from shareholders.
Another reason behind the rising stock price is that VI has publicly announced that it is in talks with vendors regarding the upcoming 5G spectrum launch. The management has also talked about infusing 2,000 crore into the company by the end of December 2023, but the company is yet to give any confirmation on this.
Akshaya Moondra, CEO of Vodafone Idea, was quoted by CNBC TV 18 earlier, saying, “In the last quarter, we received a letter from the promoters informing them that they will support them. me for an amount of ₹ 2,000 crore. So far, they have yielded nothing. We have secured bank financing to cover the short-term gap we experienced in the last quarter. »
Vodafone Idea’s 5G deployment plan
During the last quarter, Vodafone Idea management said the company is in talks with vendors to prepare a suitable plan for 5G deployment in the country, adding that the significant expansion of the spectrum 4G spectrum from VI will also take place once funding is completed.
Vodafone Idea Chairman Kumar Mangalam Birla also talked about making “significant investments” in the nationwide 5G rollout in the coming quarters, without specifying a timeline.
VI stock will likely rise further after the 5G rollout brings in some subscriber base. According to TRAI data, in September, Vodafone Idea lost around 7.4 million subscribers.
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