Vodafone Idea’s share price crossed the ₹1 lakh crore mark as investor optimism grew around the troubled telco’s plans to expand its 4G and 5G networks.
What Happened: The Aditya Birla-owned company has seen a number of recent developments that have been reflected in a boost to the share price of the stock.
These include India’s biggest follow-on offering and talks with equipment vendors like Ericsson India to expand its network and become more competitive with market leaders Reliance’s Jio and Bharti Airtel.
See Also: Godrej Properties Shares Drop 3% As Defence Ministry Raises Objection Over ₹7,000 Cr Mumbai Project
All three major private telecom operators in India are expected to participate in the spectrum auction scheduled for next month. Both Jio and Airtel are keen to tap into the private 5G network market, with Airtel already powering eight private 5G networks.
Moreover, most experts expect a tariff hike in the months following the general elections, which could help all three operators shore up their average revenue per user.
Meanwhile, global brokerage UBS upgraded Vodafone Idea to “buy” as it expects the various measures taken by the Indian government to prevent a duopoly in the sector will help the troubled telco.
Price Action: Vodafone Idea’s share price was up 8.54% at ₹15.25 around noon on Friday, taking its market cap to ₹1.01 lakh crore.
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