Vodafone Idea Share Price Surge Over 5% on Network Expansion News

Vodafone Idea share price saw a sharp rise of over 5% on Thursday, February 13, after the company announced plans to spend ₹10,000 crore to expand its network by the end of March. This marked the end of a three-day losing streak, with the stock opening at ₹8.10 and hitting an intraday high of ₹8.94.

Expansion and Capital Expenditure Plans

Vodafone Idea aims to boost its network spending in the coming months significantly. The company has already spent ₹5,300 crore on capital expenditure (capex) from April to December 2024. The announcement of the ₹10,000 crore network expansion, which is nearly equivalent to its entire spending for the first 9 months of the year, was welcomed by investors.

Handling Regulatory Demands

Despite the Department of Telecommunications (DoT) demanding a ₹6,090 crore bank guarantee by March 10, the optimism surrounding the network expansion helped boost Vodafone Idea’s stock. The company is also seeking ₹35,000 crore in bank funding to support its expansion plans.

Financial Outlook and Debt Management

Vodafone Idea is also negotiating with the government to convert a portion of its outstanding dues into equity. The company owes ₹43,000 crore in dues, but a significant portion of this can be converted into equity under the government’s reforms package.

About Vodafone Idea

Vodafone Idea is a major telecom service provider in India, offering mobility and long-distance services, as well as trading handsets and data cards.

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