Vodafone Idea Share Price Highlights September 23, 2024: Vodafone Idea shares surge after concluding deal with Nokia, Ericsson, Samsung

Shares of Vodafone Idea ended Monday’s trade 3.72% higher on the NSE and BSE at ₹10.86 and ₹10.87, respectively.

Vodafone Idea shares traded at ₹10.82 on the NSE, higher by 3.34% as at 3.05 pm.

Vodafone shares trade at ₹10.98 on the NSE, higher by 4.87% as at 2 pm.

Vodafone shares traded at ₹11.07 on the NSE, higher by 5.73% as at 12.09 pm.

Shares of Vodafone Idea on Monday jumped 14 per cent after the firm awarded contracts worth about Rs 30,000 crore to Nokia, Ericsson and Samsung for supply of 4G and 5G network equipment for three years.

The stock surged 11.73 per cent to Rs 11.71 on the BSE.

At the NSE, it soared 14 per cent to Rs 11.94.

It is the largest deal awarded by any Indian telecom operator during this year.

The deal also marks the first step towards the roll-out of the company’s three-year capex (capital expenditure) plan of about USD 6.6 billion or Rs 55,000 crore announced earlier.

“Vodafone Idea (VIL) has concluded a mega, about USD 3.6 billion (around Rs 300 billion), deal with Nokia, Ericsson and Samsung for supply of network equipment over a period of three years. The capex programme is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and capacity expansion in line with data growth,” the company said in a statement on Sunday.

The supplies against these new long-term awards will start in the coming quarter.

The top priority for the company is to expand the 4G coverage to 1.2 billion Indians, the statement said.

VIL CEO Akshaya Moondra said that the company has started the investment cycle and it is on the journey of VIL 2.0.

“From hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities. Nokia and Ericsson have been our partners since our inception and this marks another milestone in that continuing partnership. We are pleased to start our new partnership with Samsung. We look forward to work closely with all our partners as we move into the 5G era,” Moondra said.

PTI report

The stock hit a 52-week low on the NSE at ₹ 9.79 on September 20, 2024.

It had recorded a 52-week high earlier on June 28, 2024, at ₹19.18.

Vodafone shares’ upper circuit has moved to ₹12.04 on the NSE.

Company’s total mcap stood at ₹75,727.28 crore.

Vodafone Idea shares rose 6.11% on the NSE to trade at ₹11.11 as at 10.14 am.

The stock will be in focus as the company concluded concluded a ₹30,000-crore ($3.6 billion) deal with Nokia, Ericsson, and Samsung for the supply of network equipment over three years. The deal marks the first step towards the roll-out of the company’s three-year capex plan of $6.6 billion. The move comes just days after the Supreme Court rejected a plea to review the order on AGR payments.

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KS Badri Narayanan of businessline writes

Vodafone Idea shares locked in upper circuit trading at ₹11.51, higher by 9.93% on the NSE as at 9.45 am.

Vodafone Idea shares ended the day’s trade on a positive note. The stock on NSE closed at ₹10.52, higher by 1.35%. 

On the BSE, it closed at ₹10.48 (+0.96%).

The stock had hit a 52-week low in early trade at ₹9.79.

Vodafone shares traded flat on the NSE and BSE at ₹10.40 and ₹10.39, respectively, as at 3.02 pm.

The stock has exhibited a pattern of progressively higher highs and higher lows since 2019, according to Kapil Shah, Technical Analyst, Emkay Global Financial Services. The latest correction at 48 per cent indicates a weakened stock texture. “The potential support band is anticipated to be within the range of ₹7 to ₹6, while the stock is expected to encounter formidable resistance within the band of ₹12 to ₹12.5,” Shah added.

Nuvama observed that it would be tough for Vodafone to retain its subscriber base, thereby affecting ARPU growth and, in turn hurting cash flows. “With the recent tariff hikes, VIL also appears to be losing market share to BSNL,” it said.

Analysts of JM Financial mentioned that the company needs ARPU to jump sharply to ₹370 in FY27 against ₹146 in 1QFY25 so as to meet annual payment obligation of ₹43,000 crore assuming 70 per cent incremental EBITDA margin and 210 million subscriber base in 1QFY25. 

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Concerns have emerged over Vodafone Idea’s ability to retain subscribers and drive ARPU growth.

Madhu Balaji of businessline writes

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​Vodafone shares​ hit a new low on Friday’s early trade at ₹9.79 on the NSE.

Currently trades at ₹9.88, lower by 4.82%.

​​The Supreme Court’s decision to reject the curative petitions on adjusted gross revenue (AGR)​​ could hit ​​Vodafone Idea​​ with a financial crisis in the second half of next year, when annual spectrum and AGR payments to government of $4-5 billion per annum become due, according to analysts.

“Tariff outlook has been improving, but without AGR concessions, it would take at least 25-30 years (15 per cent ARPU Cagr) for Vi to organically pay back its obligations, and as such, further repayment timeline extensions are required. In our base case, we continue to see market-share erosion and meaningful equity dilution risk,” said a research report from Macquarie.

“Given VI’s still-unresolved fundamental balance sheet and cash flow challenges, our base case with 50 per cent probability remains a ‘VI chug-along scenario’ with steady market-share erosion to Jio and Bharti,” it added.

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Shares of Vodafone Idea and Indus Towers tumbled on Thursday as in a jolt to telecom firms, the Supreme Court dismissed a batch of pleas filed by these companies, seeking correction of alleged errors in the adjusted gross revenue.

The stock of Vodafone Idea slumped 19.60 per cent to settle at Rs 10.38 on the BSE. During the day, it dropped 22.15 per cent to hit a 52-week low of Rs 10.05.

Shares of Indus Towers tanked 8.86 per cent to Rs 389.65. Intra-day, the stock plummeted 14.32 per cent to Rs 366.30.

Bharti Airtel, however, ended 0.75 per cent higher at Rs 1,665.05 after falling 0.36 per cent to Rs 1,646.65 in intra-day.

A bench comprising Chief Justice D Y Chandrachud and Justices Sanjiv Khanna and B R Gavai also rejected the plea of telcos seeking to list the curative petitions for open court hearing.

A curative petition is the last legal recourse in the apex court and is generally considered in-chamber unless a prima facie case is made out for reconsideration of the verdict.

On October 9 last year, the top court had taken note of submissions of some telecommunication companies seeking listing of their pleas on Adjusted Gross Revenue (AGR) due issue.

The telcos had referred to alleged errors in the arithmetic calculation for arriving at the AGR-related dues by the Department of Telecommunications (DoT).