Vodafone Idea shares were up nearly 2% in early trade on Wednesday after reports that the company was looking to repay dues to the government.
What Happened: The struggling telecom giant, plans to pay off around ₹2,400 crore it owes to the government by September, sources told PTI. They added that the company recently settled pending bills of about ₹450 crore, including license fees and spectrum usage charges, for the March quarter of 2022-23.
The source told the news agency that Vodafone Idea intends to sort out dues for the June 2023 quarter, along with spectrum instalment costs, including any interest, before September.
See Also: Nitin Gadkari Introduces Bharat NCAP Safety Rating System
Mounting Dues: The company found itself in a tough spot with a license fee of about ₹770 crore due in July and an initial instalment of ₹1,680 crore for spectrum acquired in the previous year’s auctions.
While Vodafone Idea has asked for an additional 30 days to handle the spectrum payment, it’s also actively preparing to clear the license fee by September, according to the report.
Notably, any delays in the spectrum instalment payment will lead to a 15% annual interest penalty. Therefore, the company is looking to pay around ₹1,700 crore for spectrum instalments and around ₹710 crore for license fee dues, including interest. In total, the outstanding amount to be settled by September stands at over ₹2,400 crore, another source told the news agency.
Price Action: Vodafone Idea’s share price was up 1.95% at ₹7.85 at open on Wednesday.
Read Next: Tesla’s Model Y Lights Up Mahindra’s Pune Facility With A Surprise Visit
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.