Shares of Vodafone Idea erased their early gains and slipped into losses on September 18 as investors took the recent surge in the counter as an opportunity to book partial profits. The scrip has soared around 50 percent in the past month. The stock had jumped around 7 percent and hit a 52-week high of Rs 12.50 earlier in the session after the company announced making a payment of Rs 1,701 crore to the Department of Telecommunications (DoT).
At 10.07 am, shares of Vodafone Idea were trading 1.7 percent lower at Rs 11.50 on the National Stock Exchange.
The payment is towards the annual installment for the spectrum acquired by the company in the 2022 auction. Last month, the company said it proposed to pay the installment of nearly Rs 1,680 crore to the DoT by availing a grace period of 30 days with interest. The company has managed to do so within a 30-day time period.
The installment was delayed owing to a funding crunch and seems to have been supported by funding from the promoter group entity as it had assured assistance of upto Rs 2,000 crore to Vodafone Idea in case it needed financial support to meet the impending payment obligations.
The telecom company currently has outstanding dues of nearly Rs 700 crore to DoT towards spectrum usage charges, license fees, and various other statutory obligations. On top of that, it is struggling with financial instability, primarily stemming from substantial losses and a staggering debt burden of Rs 2.1 lakh crore.
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Nevertheless, there have been positive developments in key performance indicators in recent quarters, including a rise in the number of 4G users and an improvement in the average revenue per user (ARPU), which is a measure of profitability.
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