Vodafone Idea share price saw a sharp rise of over 5% on Thursday, February 13, after the company announced plans to spend ₹10,000 crore to expand its network by the end of March. This marked the end of a three-day losing streak, with the stock opening at ₹8.10 and hitting an intraday high of ₹8.94.
Expansion and Capital Expenditure Plans
Vodafone Idea aims to boost its network spending in the coming months significantly. The company has already spent ₹5,300 crore on capital expenditure (capex) from April to December 2024. The announcement of the ₹10,000 crore network expansion, which is nearly equivalent to its entire spending for the first 9 months of the year, was welcomed by investors.
Handling Regulatory Demands
Despite the Department of Telecommunications (DoT) demanding a ₹6,090 crore bank guarantee by March 10, the optimism surrounding the network expansion helped boost Vodafone Idea’s stock. The company is also seeking ₹35,000 crore in bank funding to support its expansion plans.
Financial Outlook and Debt Management
Vodafone Idea is also negotiating with the government to convert a portion of its outstanding dues into equity. The company owes ₹43,000 crore in dues, but a significant portion of this can be converted into equity under the government’s reforms package.
About Vodafone Idea
Vodafone Idea is a major telecom service provider in India, offering mobility and long-distance services, as well as trading handsets and data cards.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.