A big news has come related to Vodafone Idea. However, this news will bring relief to the entire telecom industry including Vodafone Idea (Vi). Actually, the Department of Telecommunications (DoT) has abolished the condition of Bank Guarantee (BG) of spectrum auction for Vodafone Idea and other operators. Let us tell you, this rule applies to the auctions before the telecom reform package of 2021, which includes the auctions of 2012, 2014, 2015, 2016 and 2021.
Vodafone Idea got big relief
Vodafone Idea said on Saturday, December 28 that it has received an official letter from the Department of Telecommunications regarding this decision. The company appreciated this step of the government and called it a big support for the industry. The company says that this step will promote investment in 4G and 5G networks in India. Let us tell you, recently Vodafone Idea (VIL) has successfully repaid the loan of about Rs 11,650 crore taken against its shares.
Vodafone Idea said in the information given to the stock exchanges, “The requirement of bank guarantee was removed for the auctions after the reform package of 2021. Now the government has removed this condition for the earlier auctions also. “
Relief from bank guarantee
Under earlier rules, Vodafone Idea had to deposit bank guarantee of about Rs 24,800 crore 13 months in advance for each installment of spectrum. Now, Vodafone Idea will not have to give bank guarantee for the auctions of 2012, 2014, 2016 and 2021.
However, the company may require a one-time partial payment for the 2015 auction. Vodafone Idea said that it is discussing this matter with DoT, so that the final amount of this payment can be decided.
What will be the benefit to the company?
The company said that by removing the condition of bank guarantee, telecom operators will be able to use the funding of banks for the expansion of 4G and 5G networks. This step shows that the government is committed to strengthening the telecom sector.
VIL share price
On Friday i.e. 27th December, the price of one share of Vodafone Idea was Rs 7.41. The total market cap of the company is Rs 52,066 crore. In the last 52 weeks, the lowest level of the share has been Rs 6.61 and the highest level has been Rs 19.18.
Impact may be visible on shares
After this statement of Vodafone Idea, its impact can be seen on the stock market also. This relief in the telecom sector will increase the confidence of investors and will infuse new energy into the industry. Vodafone Idea and other telecom companies will get huge financial benefits from this decision of the government, which will enable them to further improve their services.
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