Telecom News: Vodafone Idea Shares Surge 18% as Cabinet Waives Bank Guarantees Worth Rs 30,000 Cr

Telecom News: The telecom sector saw significant advancements as the Union Cabinet granted a waiver of bank guarantees for spectrum allotments undertaken before 2022. This move is intended to reduce the financial pressure on telecom companies, notably Vodafone Idea, Airtel, and Jio. Vodafone Idea stands to benefit the most, as it bore a significant bank guarantee liability of Rs 24,700 Cr. When combined with Airtel, the overall burden is nearly Rs 30,000 Cr. The waiver comes as a relief to Vodafone Idea, which has been dealing with financial difficulties, including difficulties in paying its spectrum costs and adjusted gross revenue (AGR) obligations.

Increase in Vodafone Idea Shares

Following the announcement, Vodafone Idea’s shares increased by 18%, reaching a high of Rs 8.28 before closing at Rs 7.55 amid market swings. The waiver will allow the corporation to focus on fundraising and expand capital expenditures. Vodafone Idea has raised Rs 24,000 Cr through QIPs and is looking for further investment possibilities totaling Rs 25,000 Cr. This action is likely to boost the company’s financial stability and position in the competitive telecom market.