Vodafone Idea Shares Extend Gains for the Fourth Straight Day

On November 28, 2024, the Vodafone Idea share price traded 2.58% higher at ₹8.38 at 11:00 AM on the NSE. The shares opened at ₹8.45, higher than its previous close of ₹8.34. Vodafone Idea has gained 17.46% in the last 5 days

Earlier this week, the Cabinet offered telecom companies relief by cancelling the bank guarantees required for spectrum purchases made until 2022.

Vodafone Idea Seeks Bank Guarantee Waiver 

The Department of Telecommunications (DoT) had backed the proposal to waive the bank guarantees that telecom operators owe for spectrum acquisitions.

As part of the 2021 reforms, the bank guarantee requirement was removed starting with the 2022 spectrum auctions. Vodafone Idea (Vi) is obligated to pay a total of ₹24,700 crore in bank guarantees, with the moratorium on spectrum auction dues concluding in October 2025.

Vi initially requested a bank guarantee waiver, a proposal that gained support from other telecom operators. However, the government’s decision to grant this waiver is expected to mainly benefit Vi, which has attributed its request to ongoing financial difficulties.

Vodafone Idea Q2 FY25 Financial Highlight

Vodafone Idea reduced its losses to ₹7,176 crore in the September quarter of FY25, an improvement from ₹8,738 crore during the same period last year.

Revenue from operations for the quarter rose by 2% compared to the previous year, reaching ₹10,932 crore.