The shares of Vodafone Idea (Vi) on Monday (September 23) saw a surge after the company announced of a major deal with Nokia, Ericsson, and Samsung on September 22. The company's stock surged by 8.96 per cent during the early trading session today, reaching Rs 11.42 apiece on the Bombay Stock Exchange (BSE).
This recent spike in the stocks of the company was in response to the announcement of a USD 3.6 Billion deal with global telecom giants Nokia, Ericsson, and Samsung.
As of 12:40 pm IST, the shares of the company were trading at Rs 11.04 apiece, up by 5.44 per cent.
Share Performance |
The shares of the company today opened at Rs 11.27 and reached a high of Rs 11.94 apiece during the intraday trading session.
What does the deal entail?
The announcement comes as a part of Vodafone Idea's broader three-year capex plan worth USD 6.6 billion (Rs 550 billion), aimed at expanding 4G population coverage and rolling out 5G in key markets.
"Vodafone Idea (VIL) has concluded a mega approx. USD 3.6 billion (approx. Rs 300 billion) deal with Nokia, Ericsson and Samsung, for supply of network equipment over a period of three years. The deal marks the first step towards the rollout of the company’s transformative three-year capex plan of approx. USD 6.6 billion (Rs. 550 billion)," the company said therough an exchange filing on September 22.
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"The capex programme is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and capacity expansion in line with data growth. The Company has continued with its existing long-term partners Nokia and Ericsson and also onboarded Samsung as a new partner," added the company.
Furthermore, the company in the exchange filing added, Vodafone Idea recently raised Rs 240 billion in equity and acquired an additional Rs 35 billion in spectrum during the June 2024 auction.
Vodafone Idea has already seen a 15 per cent boost in network capacity and expanded its reach by 16 million people, with improvements in certain regions, the company noted in the regulatory filing.
