Mumbai: Vodafone Idea share price is in the news after the Union Cabinet waived off bank guarantee requirement for spectrum purchased in past auctions held before 2022. Vi stock traded with nearly 3 per cent gains at 7.73 at round 11:15 am on November 27, 2024.
The counter jumped nearly 8 per cent on 26th November after the bank guarantee news arrived. During the day, Voda shares jumped 18.62 per cent to Rs 8.28. The Voda Idea share price increased as the Cabinet’s green signal for bank guarantee waiver for past spectrum purchases is expected to help reduce financial burden on telecom operators in the country.
The cabinet decision will bring huge relief to debt-ridden Vodafone Idea as the telecom company has already crossed the timeline to submit Rs 24,746.9 crore bank guarantee for spectrum payment coming up between October 2025 and September 2026.
Market Expert Opinion & Future Outlook for Vi Stock
Speaking to Money9, stock market expert Santosh Meena recommended no fresh buying of Vodafone Idea shares. However, the expert advised the existing shareholders to hold the counter as it can reach a target price of Rs 11.50 to Rs 12. Meena suggested that stakeholders should maintain a strict Stop Loss at Rs 6.
Meanwhile, Industry body COAI termed the Cabinet nod as a ‘landmark decision’, saying that it would help reduce financial burden on telecom operators in the country. “COAI welcomes the Union Cabinet’s move and thanks the Government on approving the waiving of bank guarantee for telecom operators on spectrum purchased before 2022. This landmark decision will significantly help reduce the financial burden on the telecom operators in the country,” SP Kochhar, Director General of COAI said in a statement.
Vodafone Idea Q2 Results 2024-25
In its second quarter results of 2024-25, the debt-ridden telecom firm Vodafone Idea reported its consolidated loss lowered to Rs 7,175.9 crore on account of increase in average revenue per user (Arpu) post-tariff hike in July. The telecom firm’s consolidated revenue from operations surged to Rs 10,932.2 crore as against from Rs 10,716.3 crore in the Q2 of 2023-24.
Vi Revenue for July-September quarter: Rs 109.3 billion, a QoQ growth of 4 per cent while the Customer revenue growth was 5.6 per cent.
Total subscriber base stood at 205 million and 4G subscriber base at 125.9 million.
The debt from banks and financial institutions reduced by Rs 45.8 billion during the last one year (was at Rs 78.3 billion in Q2FY24) and stood at Rs 32.5 billion. The cash and bank balance was Rs 136.2 billion as of September 30, 2024.
The payment obligations to the Government stood at Rs 2,122.6 billion as of September 30, 2024 including deferred spectrum payment obligations of Rs 1,419.4 billion and AGR liability of Rs 703.2 billion.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Vodafone Idea (Vi) share price recorded significant gains following the Indian government’s decision to waive bank guarantees for past spectrum purchases. Market expert Santosh Meena advised against buying Voda Idea shares. He advised the existing shareholders to hold, anticipating a potential price rise. Vi’s Q2 results reported improved revenue and reduced debt, which further contributes to the positive market sentiment. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
