Vodafone Idea share price give up gains, falls after two day rally led by 5G roll out

Vodafone Idea share price gave up early gains to trade over 2% lower on Thursday, after rallying for two straight sessions. The telecom company gained nearly 5% in the previous session after it announced the roll out of 5G services in Mumbai. The telecom stock rallied as much as 1.87% to ₹7.59 apiece on the BSE today, but gave up gains to trade 2% lower.

The Aditya Birla Group telecom operator, Vodafone Idea on Wednesday announced the launch of its 5G services in Mumbai, delivering next-generation connectivity to customers in the city.

“Vi’s 5G services will be available in the city, starting today, powered by its competitive spectrum holding and significant investment in next generation infrastructure. The company is committed to delivering enhanced capacity, superior performance, and reliability,” Vodafone Idea said in a regulatory filing on March 19.

Vodafone Idea has partnered with Nokia, integrating the latest generation of equipment in its 5G rollout in the city, designed to not only be leaner, but also energy efficient, making the network more sustainable, it added.

Moreover, Vodafone Idea has also deployed an AI-based SON (Self-Organizing Networks) system, which continuously optimizes network performance to ensure the best consumer experience.

Vodafone Idea 5G Tariffs

Vodafone Idea 5G introductory offer provides unlimited 5G data for Vi subscribers on plans starting at just ₹299, making it the most competitively priced option in the market, it said.

In talks with Starlink & other satcom providers

Vodafone Idea also issued a clarification to stock exchanges w.r.t. a news report stating that the company was in talks with Starlink and other satcom providers.

“We wish to inform you that the Company in ordinary course of business keeps on exploring various initiatives and tie-ups with various parties to enhance the quality of service as also for expansion of the telecom services. The Company is in exploratory talks with various Satcom providers including Starlink,” Vodafone Idea said in an exchange filing on March 19.

Vodafone Idea Fundraise

In the last 12 months, Vodafone Idea has raised equity of ₹26,000 crore, including the largest FPO (Follow-on Public Offer) in India of ₹18,000 crore and promoter contribution of ₹4,000 crore, enabling the company to accelerate its capex deployment.

With the planned capex investment of ₹50,000 to 55,000 crore over three years, Vodafone Idea is working towards expansion of its 4G network to cover ~90% of Indians, in addition to launch of 5G services in key geographies, to continuously enhance the customer experience, said the company.

Vodafone Idea Stock Price Performance

Vodafone Idea share price has fallen 10% in one month, and dropped over 8% on a year-to-date (YTD) basis. The beleaguered telecom stock has declined 30% in six months and 42% in one year. 

At 10:00 AM, Vodafone Idea shares were trading 2.55% lower at ₹7.26 apiece on the BSE. 

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