Vodafone Idea (Vi) reportedly received no relief from the government regarding the Rs 6,090 crore bank guarantee that must be submitted by March 10, 2025, CNBC Awaaz reported, citing sources. As a result, Vi shares declined from the day's highs on Monday.
Also Read: Vodafone Idea Asked to Provide Rs 6,090 Crore Bank Guarantee: Report
No Relief from the Government
Vodafone Idea must deposit Rs 6,090 crore by the end of the day as per the Department of Telecom's (DoT) directive. The DoT had sought this bank guarantee from Vodafone Idea for the spectrum acquired after 2015. According to the report, the telecom operator had requested an exemption but did not receive one.
Also Read: Vodafone Idea Says No Legal Options Left After SC Rejects AGR Review Plea
Telecom Reforms on Bank Guarantees
As part of the telecom reforms introduced in 2021, the government eliminated the requirement for bank guarantees in spectrum auctions held after the reforms, citing the industry's maturity.
Also Read: Nokia Completes 5G Equipment Deliveries for Vodafone Idea, Gears Up for March 2025 Launch
Analyst Sentiment
Brokerage firm HSBC maintained a "reduce" rating, lowering its price target from Rs 7.1 to Rs 6.5, indicating a potential 17.3 percent downside, the report added.
Furthermore, analyst sentiment remains weak, with only four out of 21 covering analysts rating the stock as a "buy," while 12 recommend a "sell," and five suggest a "hold."
