Vodafone Idea shares climbed almost 7 per cent on the NSE (National Stock Exchnage), as cash strapped network service provider of communication received from DoT (Department of Telecommunication), which waived the requirement to submit the bank gurantee for spectrum acquired via auction 2012, 2014, 2015, 2016 & 2021.
The shares of the Vodafone idea touch the day high level of Rs 7.99 per share on the Indian exchanges after ringing the opening bell at Rs 7.99 per share on the bourses.
Vodafone Idea shares were trading at Rs 7.69 per share on the indian bourses, with surge of 2.95 per cent amounting to Rs 0.22 per share on the NSE (National Stock Exchanges).
VI's past installments of BG
In the past, Vodafone Idea had to submit bank guarantees for each spectrum installment, totaling about Rs 24,800 crore, 13 months prior to the due date. In its filing after the DoT's ruling, Vodafone Idea affirmed that bank guarantees would not be needed for the auctions in 2012, 2014, 2016, and 2021.
One time shortfall in 2015 auction
Vodafone Idea is in talks with the DoT to finalize the amount of the one-time partial shortfall that will remain for the 2015 auction. 'This decision to remove bank guarantees highlights the government's continued assistance for the telecom industry and allows telecom operators to reallocate banking resources to the expansion of 4G and 5G networks in India,' the company stated in a Saturday exchange filing.
Vodafone Idea previously clarified on November 26 that the Union Cabinet had approved a plan to eliminate the need for bank guarantees for spectrum acquired through auctions through 2022.
Although the business had not yet received official word, it acknowledged providing the DoT with thorough representations, which was in line with a demand for this kind of relief from the industry.
