Shares of Vodafone Idea gained around 4 percent after a report said the telecom service provider had completed its 5G rollout obligation in all circles. The company has a 5G spectrum in 17 circles, and has completed the rollout obligation in both spectrum bands.
Vodafone Idea got network testing done by the Department of Telecommunications in both spectrum bands. The company had completed the rollout obligation with a penalty of about Rs 1 crore, reported CNBC Awaaz citing sources.
Notably, it is mandatory to carry out rollout obligations according to the terms of the licence. An action could have been taken against the company if the rollout was not completed as per the terms. Vodafone Idea's 5G spectrum could have been cancelled. The company had a deadline of August 15, 2024.
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Earlier this week, Vodafone announced that it had sold an 18 percent stake in Indus Towers for €1.7 billion (approximately Rs 15,300 crore). The company said that it will use the major portion of the proceeds to repay €1.8 billion in outstanding bank borrowings secured against Vodafone's assets in India.
Persistent pressure from lenders over an outstanding loan taken around five years ago were among the key reasons why the telco's UK parent sold its stake.
Vodafone Idea recently raised Rs 18,000 crore through the country's largest Follow-on Public Offer (FPO) and another Rs 2,075 crore through a promoter group entity, thereby completing its Rs 20,000 crore equity fundraising exercise.
Also Read | Why did Vodafone Group sell 18% stake in Indus Towers now?
At 1:23 pm, Vodafone Idea shares were trading 3.4 percent higher at Rs 17.09 on the National Stock Exchange (NSE). In the last one year, the stock has gained 120 percent, more than doubling investors' money. In comparison, Nifty delivered returns of around 25 percent during this period.
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