Stock Market Today: Vodafone Idea share price remains in focus on Monday as it has received a letter from the Department of Telecommunications (DoT), regarding the waiver of bank guarantees.
In a letter to the exchanges Vodafone Idea said that Department of Telecommunications (DoT) vide its communication dated 27 December 2024, has dispensed with the requirement of submission of Financial Bank Guarantees for the Spectrum acquired in Spectrum Auction held in 2012, 2014, 2015, 2016 and 2021, subject to certain terms and conditions.
Vodafone share price had closed at ₹7.47 on the BSE on Friday and was down 1.32%. Vodafone Idea share price is down almost 10% in a month and almost 58% in last sx months.
The updates by Vodafone Idea thereby could thereby provide support to the Investors sentiments.
Vodafone Idea in its press release said that Government’s Bank Guarantee relief to telecom industry will boost 4G and 5G investments in India
As per Vodafone Idea’s press release on the exchanges, recently, the Department of Telecommunication, Government of India further extended its support to the telecom industry by dispensing with the requirement of Bank Guarantee to be submitted for spectrum auctions held prior to reform package i.e. for spectrum auctions of 2012, 2014, 2015, 2016 and 2021, provided the pro-rated value of spectrum used from the date of allocation till the end of three (3) months after the due date of payment of next instalment is less than the value of payment made by the telecom operator on an NPV basis.
Prior to this reform, Bank Guarantee aggregating to Rs. 24,800 Crore were required to be provided by Vodafone Idea against each spectrum instalment, 13 months prior to the installment falling due for the above auctions. Vodadone India said that “As per our understanding of the terms and conditions, out of all the 5 auctions mentioned above, no Bank Guarantee will be required to be provided by VIL for the 2012, 2014, 2016 and 2021 auctions
