Vodafone Idea’s 5G Progress Sparks 4% Surge in Shares

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Vodafone Idea Ltd. shares rose by 4% on Friday, hitting a high of 17.25 after reports stated that the telecom provider fulfilled its 5G rollout requirement in all areas. The company holds 5G spectrum in 17 regions and has met the rollout obligation in both spectrum bands, as verified by sources to CNBC Awaaz.

Vodafone Idea underwent network testing by the Department of Telecommunications in both spectrum bands. According to sources, Vodafone Idea has fulfilled the rollout requirement with a penalty of around ₹1 crore.

Meeting rollout obligations is crucial, as per the license terms, and there are potential consequences if they are not completed as mandated. Failure to comply could have led to the cancellation of Vodafone Idea’s 5G spectrum by the August 15, 2024 deadline.

The company recently secured ₹18,000 crore through the largest Follow-on Public Offer (FPO) in the country and an additional ₹2,075 crore through a promoter group entity, completing a total equity fundraising of ₹20,000 crore.

Discussions are in progress to secure debt funding amounting to ₹25,000 crore. Vodafone Idea also issued equity shares to Nokia and Ericsson to settle outstanding dues of ₹2,458 crore.

Vodafone Idea’s stock is up by 3.87% at 17.17, marking a positive turn for the year with today’s increase. The company’s shares have surged by 120% in the past year.