Vodafone Idea shares zoom ~7% after major relief from DoT

30 Dec 2024 , 02:09 PM

Vodafone Idea Ltd., the debt-ridden telecom services provider, informed the exchanges over the weekend that the telecom department, in a communication dated December 27, 2024, waived the requirement to submit financial bank guarantees for spectrum acquired through spectrum auctions.

The Department of Telecommunication has eliminated financial bank guarantees for Spectrum obtained during auctions in 2012, 2014, 2015, 2016, and 2021. However, certain terms and limitations apply.

Prior to the announcement, Vodafone Idea was required to file bank guarantees worth almost ₹24,800 Crore for each spectrum instalment 13 months before the auctions. 

However, there is a one-time shortfall for the 2015 auction, and the firm is currently in talks to determine the ultimate amount of this partial shortfall.

Vodafone Idea informed the bourses on November 26 that the Union Cabinet approved a proposal to eliminate bank guarantees required by telecom operators for spectrum purchased in DoT auctions up to 2022. It stated that it had not received any response from the DoT in this regard thus far, but that it had made detailed comments to the DoT regarding the withdrawal of bank guarantees, which is also an industry request.

At around 12.51 PM, Vodafone Idea was trading 4.02% higher at ₹7.77, against the previous close of ₹7.47 on NSE. The counter rose to an intraday high of ₹7.99.

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