Wed. Sep 27th, 2023
Vodafone Idea Denies Acquisition Reports, Makes Payment for Spectrum Auction

Vodafone Idea has dismissed recent reports claiming that it is in discussions to be acquired by Verizon, Amazon, or Starlink. The company stated that these reports are incorrect and that it is not engaged in any such discussions with the named parties.

Following this clarification, Vodafone Idea’s stock fell nearly 6 percent. The stock is currently being traded at Rs 11.04 on the Bombay Stock Exchange.

In a regulatory filing, Vodafone Idea confirmed that it has made a payment of Rs 1,701 crore to the Department of Telecommunications as part of the 2022 Spectrum Auction Instalment. This payment was made in accordance with the terms outlined in the Notice Inviting Applications dated June 15, 2022.

Earlier, on August 14, Vodafone Idea had received communication from a promoter group entity, stating that it would provide financial support of up to Rs 2,000 crore in the event of any fund requirement to meet payment obligations.

On August 24, CARE Ratings revised the outlook of Vodafone Idea Limited’s long-term bank facilities and instruments from ‘Positive’ to ‘Stable’. This revision was due to the delay in fund raising from investors and financial institutions against the scheduled timelines. However, the ratings were reaffirmed.

The ratings took into account the experienced management team, the company’s nationwide presence in the telecommunications industry, strong brand recognition, and a stable outlook for the Indian telecom sector. Additionally, it considered the support provided by the promoter groups – the Aditya Birla group and Vodafone group Plc. The government holds the majority shareholding of 33.14 percent through the Department of Investment and Public Asset Management.

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