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Vodafone Idea Shares Surge 4% as Company Completes 5G Rollout Obligation

24 June 20243 mins read by Angel One
Vodafone Idea Limited stock is trading up by 4% after it’s said that the telecom company completed its 5G rollout obligation in all circles.
Vodafone Idea Shares Surge 4% as Company Completes 5G Rollout Obligation
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Vodafone Idea is one of the leading telecom service providers in India. The company’s business services include voice business/ services, broadband services, content services, enterprise services, and other VAS offerings like entertainment, SMS, and Utility. It is the third largest telecom operator in India. 

Vodafone Idea Stock up by 4%

Shares of Vodafone Idea Ltd. surged by 4% on Friday, reaching a day’s high of Rs. 17.25, following reports that the telecom service provider successfully completed its 5G rollout obligations in all circles. Vodafone Idea holds 5G spectrum licenses in 17 circles and has fulfilled the rollout requirements for both spectrum bands. According to reports, the company also conducted network testing through the Department of Telecommunications to ensure compliance with the stipulated terms.

Meeting these rollout obligations is crucial as it is a mandatory condition under the terms of the license. Failure to complete the rollout as required could have led to severe actions, including the potential cancellation of Vodafone Idea’s 5G spectrum. The company had been facing an August 15, 2024, deadline to meet these obligations, and this successful completion has likely contributed to the positive market response.

Recent Fundraising by VI

The telco recently raised Rs. 18,000 crore through the country’s largest Follow-on Public Offer (FPO) and an additional Rs. 2,075 crore from a promoter group entity, completing its Rs. 20,000 crore equity fundraising exercise. Additionally, Vodafone Idea announced ongoing discussions to secure debt funding amounting to Rs. 25,000 crore. This financial boost is expected to support the company’s strategic initiatives and bolster its market position. The FPO of Vodafone Idea came at Rs.11 per share and the stock is currently up by 56% from its FPO price.

Conclusion: Vodafone Idea’s strategic initiatives of completing its 5G rollout obligations have positively impacted the company. These efforts have led to a 4% increase in its stock price, reflecting investor confidence. The stock has been up by 25% in the past one month and currently trades at Rs.17.18 a piece.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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