Shares of Vodafone Idea were rocketing on Monday morning after the company managed to secure a $3.6 billion (around ₹29,880 crore) deal with three global network partners.
What Happened: On Sunday, Vodafone Idea announced that it has finalised the agreement with Nokia, Ericsson, and Samsung for the provision of network equipment over the next three years. This deal is part of the company's ambitious capital expenditure plan of $6.6 billion (approximately ₹55,000 crore) over the same period.
The investment is intended to boost 4G population coverage from 1.03 billion to 1.2 billion, introduce 5G in key markets, and enhance capacity to keep pace with data growth.
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Earlier, reports also said that the company was in talks with existing and new lenders to tie up for ₹25,000 crore of funded and ₹10,000 crore of non-fund-based facilities.
The deal comes as Vodafone Idea continues to be pressured by piling debt obligations and last week’s Supreme Court ruling that dismissed a series of petitions from telecom companies, including Vodafone Idea and Bharti Airtel, regarding the recalculation of the adjusted gross revenue (AGR) dues.
Brokerages said that the apex court’s stay on its previous order will extend the telecom firm’s debt repayment timeline by a further 25-30 years. They also said that it may need to increase its tariff to address its free cash flow gap.
Price Action: Vodafone Idea saw its shares soar by 9.93% to ₹11.51 on Monday morning.
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