Vodafone-Idea Share: Tuesday has brought good news for the shareholders of Vodafone-Idea. As soon as the stock market opened on Tuesday morning, a rise in the shares of Vodafone-Idea was seen. There was a time when the share of Vodafone-Idea was known only for falling, but a decision of the government made the share of Vodafone-Idea a rocket.
As soon as the stock market opened on Tuesday, Vodafone-Idea shares increased by 18.08 percent to reach Rs 8.23. Let us know due to which decision of the government this rise was seen in the shares of Vodafone-Idea.
The government gave this sanjeevani
The central government has abolished the bank guarantee sought in the 2022 spectrum auction. Vi had to deposit a total bank guarantee of Rs 24,700 crore. The deadline for moratorium on spectrum auction dues was October 2025. In such a situation, this decision of the Central Government has brought Sanjeevani Booti for Vi.
The Department of Telecommunications (DoT) had supported the waiver of bank guarantees payable to telecom operators for purchasing spectrum. At the same time, Vi had also not yet deposited its second bank guarantee of Rs 350 crore, which was to be deposited by November 1, which also included the spectrum purchased in the 2012 auction. According to the report of Economic Times, it is the third largest mobile operator company in India. BG failed to pay over Rs 4,600 crore for 2016 spectrum auction in September
Vi demands waiver of bank guarantee
From the beginning, Vodafone-Idea had appealed to the government to waive the bank guarantee, which was supported by all the telecom companies. In such a situation, Vi has benefited the most from the recent decision of the government. While its rivals Bharti Airtel and Reliance Jio also require BG deposits to secure past auction payments, their amount is much lower than that of Vi.
For example, Airtel’s BG for the 2016 auction is due in September next year, but the company needs to pay only Rs 2,200 crore. After Airtel, Jio has BG payable of around Rs 4,400 crore.
Shares of Airtel and Jio
Meanwhile, after the update, Bharti Airtel shares rose 1.6% to Rs 1,604.95 on BSE, while Jio Financial Services fell nearly 1% to Rs 320.10.