Vodafone Idea Shares Surge 12% Following Recent Deal Announcement

Shares of the financially troubled Vodafone Idea surged 12% on Monday following the company's announcement of $3.6 billion (Rs 30,000 crore) deals with Nokia, Ericsson, and Samsung to acquire telecom equipment for 4G network expansion and 5G rollouts over the next three years.

On the BSE, Vodafone Idea's shares rose by 11.73%, reaching Rs 11.71. The company's market capitalisation increased to Rs 79,197 crore, with a total of 585.63 lakh shares traded, resulting in a turnover of Rs 66.42 crore.

Vodafone Idea (“VIL” or “the Company”) has finalised a significant $3.6 billion (Rs 300 billion) agreement with Nokia, Ericsson, and Samsung for the supply of network equipment over the next three years. This deal represents the initial step in the company’s ambitious three-year capital expenditure plan of $6.6 billion (Rs 550 billion). The capex initiative aims to expand 4G population coverage from 1.03 billion to 1.2 billion, launch 5G services in key markets, and enhance capacity in response to increasing data demand, as stated in a filing to the exchanges.

Akshaya Moondra, CEO of Vodafone Idea Limited, remarked, "We are committed to investing in emerging network technologies to deliver a best-in-class experience for our customers. This marks the beginning of our investment cycle as we embark on VIL 2.0, positioning ourselves for a strategic turnaround to capitalise on industry growth opportunities. Nokia and Ericsson have been our partners since our inception, and this agreement is another milestone in our ongoing collaboration. We are also excited to commence our partnership with Samsung and look forward to working closely with all our partners as we transition into the 5G era."