Vodafone Idea(NSE: IDEA) share rose more than 11% in early trade on Monday. Today it has reached Rs 11.63. The reason behind the surge in its shares after last week’s decline is a deal with Nokia, Ericsson, and Samsung.
It has also announced the signing of a $3.6 billion agreement together with Nokia, Ericsson, and Samsung to supply network devices of three different sizes.
Based on data, this deal is the initial step in implementing its $6.6 billion (Rs 550 billion) transformative capex plan for three years.
Vodafone Idea said in an exchange filing on the 22nd of September that the capex plan aims to boost the coverage of 4G by 1.03 billion to 1.2 billion, launch 5G in major markets, and expand capacity to keep up with the growing demand of data.
The company has maintained a long-term partnership with Nokia and Ericsson and added Samsung as the new partner. Samsung was added.
In the wake of the recent equity raise of Rs. 240 billion, and the acquisition of spectrum worth 35 billion during the auction of June 2024, Vodafone Idea has also implemented a quick win capex. Along with working on long-term contracts.
These quick wins came mostly due to the introduction of a wider spectrum of existing sites and the rollout of a few new websites.
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Bounce Today After A Huge Decline
Last week, there was a rush to sell Vodafone Idea shares. Due to the stampede among investors, its shares had registered a huge decline.
The reason behind the decline was the Supreme Court’s decision in which it rejected a petition by telecom companies on recalculation of adjusted gross revenue (AGR) dues.
Shares Fell 32 Percent This Year
Despite today’s surge, the return of Vodafone Idea shares in the last 5 days is negative. The stock is closed at Rs 10.86.
In the last 5 days, it has caused a loss of about 13 percent and in a month it has lost 27.24 percent. This stock has fallen more than 32 percent so far this year. Its 52-week high is Rs 19.18 and low is Rs 9.79.
Quick Fact
| Company name | Vodafone Idea |
|---|---|
| Share increase | 11% |
| Latest share price | ₹11.63 |
| New deal | Nokia, Ericsson, Samsung |
| Deal size | $3.6 billion |
| Capex plan | ₹550 billion |
| Plan duration | 3 years |
| 4G coverage | 1.03 to 1.2 billion |
| 5G launch | Major markets |
| Equity raised | ₹240 billion |
| Spectrum cost | ₹35 billion |
| Quick win capex | Wider spectrum, new sites |
| Recent decline | Supreme Court AGR dues decision |
| Share fall | 32% this year |
| Loss last month | 27.24% |
| Loss last 5 days | 13% |
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