Vodafone Idea stock up 2% on plans to clear partial debt by September

Vodafone Idea Limited shares surged 2 percent to Rs 8 on August 23 after the debt-ridden company announced its plans to clear about Rs 2,400 crore of dues to the government by September, PTI reported on August 22.

“Vodafone Idea will clear dues for the June 2023 quarter and spectrum instalment with applicable interest by September, ” a source told the news agency. Vodafone Idea had to pay a licence fee of around Rs 770 crore by July and Rs 1,680 crore as the first instalment for the spectrum it purchased in auctions that were held last year.

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While the company has sought 30 days to clear the spectrum payment, the company is also gearing up to clear the licence fee payment by September. Due on late payment of spectrum instalments will attract a 15 per cent interest rate on an annual basis. The company will have to pay around Rs 1,700 crore for spectrum instalments and around Rs 710 crore for licence fee dues with interest, PTI reported.

Recently, Tanla Platform decided not to continue the agreement with Vodafone Idea. The company had entered into a term sheet with Vodafone Idea for the provision of platform and firewall services for international A2P services in November 2021, which was valid for a term of 2 years. This partnership will not continue beyond the initial term, Tanla said.

The telecom major’s net loss widened to Rs 7,840 crore for the quarter ended June 2023. Its revenue from operations rose by a marginal 2 percent to Rs 10,655 crore in the first quarter, compared with Rs 10,410 crore in the same quarter of last year.

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