Vodafone Idea shares fell following the DoT issuing a notice to the company for failing to submit bank guarantees covering past spectrum auction dues
Vodafone Idea Share Price Today: Shares of Vodafone Idea slipped 6.64 per cent to Rs 9.14 on BSE today after the Department of Telecommunications (DoT) issued a notice to the company regarding the non-payment of bank guarantees required to cover past spectrum auction dues.
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The notice, as per an Economic Times report, was issued because the joint venture between the UK’s Vodafone Group and India’s Aditya Birla Group failed to provide the necessary bank guarantees on time for spectrum dues from auctions held before 2022.
News18.com could not independently verify the report.
Vodafone Idea’s moratorium on spectrum auction dues will end in September 2025, and the company must submit bank guarantees at least a year in advance to secure these dues, states the report. The guarantees were to be submitted in phases for various auctions, with the first tranche expected by September 20.
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Vi had earlier written to DoT seeking a waiver for submitting bank guarantees. While the companies need not provide bank guarantees for airwaves purchased in auctions from 2022 onwards, earlier rules mandated firms to provide a bank guarantee of an amount of one annual installment.
At 9:52 am, Vodafone Idea’s shares were trading 6.4 per cent lower at Rs 9.17. Its shares have declined 45 per cent in 2024 to date and 20 per cent over the past three years, with the company currently holding a market capitalization of Rs 63,984 crore.
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