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Shares of Vodafone Idea Ltd. surged as much as 15%, the most since January 1, during Tuesday's trading session. Trading volumes were 252% higher than the 20-day average.
The telco has issued a clarification with regards to reports of bank guarantees from the Department of Telecommunications (DoT).
Vodafone Idea said that it is yet to receive any communication from the DoT or the government about any decision taken in this matter.
"As and when a decision is communicated by the DoT or any decision of Government of India through a press release is available, the company will make the necessary disclosures as required," it said in an exchange filing.
It has been reported that the Union Cabinet has approved a waiver of bank guarantees for telecom companies, marking a significant step toward easing the financial burden on the sector, with Vodafone Idea expected to be one of the key beneficiaries.
The waiver applies to spectrum acquired by telecom operators in auctions held before 2022, sources told CNBC-TV18.
Earlier, the Department of Telecommunications (DoT) had proposed the move, responding to industry demands for relief. Telecom companies had written to the DoT, urging the removal of bank guarantee requirements for pre-2022 spectrum acquisitions.
This decision builds on the 2021 Cabinet reforms, which waived the need for bank guarantees on spectrum acquired prospectively. By extending this relief retroactively to older spectrum holdings, the government aims to alleviate financial stress in the telecom sector and bolster its stability.
Vodafone Idea shares ended 9.18% higher at ₹7.61. Despite today's gain, the stock has declined over 55% so far this year.
The telco has issued a clarification with regards to reports of bank guarantees from the Department of Telecommunications (DoT).
Vodafone Idea said that it is yet to receive any communication from the DoT or the government about any decision taken in this matter.
"As and when a decision is communicated by the DoT or any decision of Government of India through a press release is available, the company will make the necessary disclosures as required," it said in an exchange filing.
It has been reported that the Union Cabinet has approved a waiver of bank guarantees for telecom companies, marking a significant step toward easing the financial burden on the sector, with Vodafone Idea expected to be one of the key beneficiaries.
The waiver applies to spectrum acquired by telecom operators in auctions held before 2022, sources told CNBC-TV18.
Earlier, the Department of Telecommunications (DoT) had proposed the move, responding to industry demands for relief. Telecom companies had written to the DoT, urging the removal of bank guarantee requirements for pre-2022 spectrum acquisitions.
This decision builds on the 2021 Cabinet reforms, which waived the need for bank guarantees on spectrum acquired prospectively. By extending this relief retroactively to older spectrum holdings, the government aims to alleviate financial stress in the telecom sector and bolster its stability.
Vodafone Idea shares ended 9.18% higher at ₹7.61. Despite today's gain, the stock has declined over 55% so far this year.
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