Voda Idea shares zoom 7% after DoT relief on bank guarantees

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Vodafone Idea share surged 7% to an intraday high of Rs 8 on the BSE after the letter from the Department of Telecommunications (DoT) waived the need for bank guarantees worth about Rs 33,000 crore for past spectrum auctions. Shares of Bharti Airtel also ticked marginally higher.

The bulk of the relief, amounting to Rs 24,800 crore, applies to Vi, a relative straggler.


“The letters to the telcos were sent on December 27,” as reported by ET earlier.

The BG waiver will apply to spectrum auctions conducted in 2012, 2014, 2015, 2016, and 2021. Spectrum auctions conducted in 2022 and 2024 have already done away with the requirement for BGs based on the 2021 telecom reforms package.


Telcos were otherwise required to furnish the guarantees to the Department of Telecommunications (DoT) to cover for spectrum payments in past auctions.

Also read: Ventive Hospitality shares to debut today. Here's what GMP indicatesVodafone Idea, which is yet to roll out 5G services, no longer needs to submit these bank guarantees and the Centre’s decision now opens the space for lenders to extend much-needed credit to the struggling telco. It urgently needs funding to ramp up 4G coverage and roll out 5G soon to catch up with bigger rivals Jio and Airtel.The loss-making telco had previously said lenders were not willing to furnish the additional guarantees, given its financial stress.

On Friday, the shares of Bharti Airtel and Jio Financial Services closed flat at Rs 1,598.95 and Rs 304.95 respectively while Vodafone Idea shares closed 1.4% lower at Rs 7.47 on the BSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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