Vodafone Idea Shares Surge 12% After Sealing $3.6-Bn Deal With Nokia, Ericsson, And Samsung

Vodafone Idea share price: The telco revealed on Sunday that it has awarded contracts worth approximately Rs 30,000 crore to the three companies for the supply of 4G and 5G network equipment

Vodafone Idea share price: Vodafone Idea's stock price soared by over 12 per cent in early trading on Monday following the company's announcement of a $3.6 billion deal with telecom giants Nokia, Ericsson, and Samsung. The contract, aimed at supplying network equipment over the next three years, sent Vodafone Idea's shares surged 11.73 per cent, reaching Rs 11.71 on the BSE on Monday. The company's market capitalisation increased to Rs 79,197 crore. A total of 585.63 lakh shares changed hands totaling a turnover of Rs 66.42 crore on the BSE.     

At 11.50 am, the BSE Sensex was trading at Rs 11.02 apiece, rising 5.15 per cent on Monday. On the NSE, the shares were trading at Rs 11.03 per share, up 5.35 per cent.

The telecom company revealed on Sunday that it has awarded contracts worth approximately Rs 30,000 crore to the three companies for the supply of 4G and 5G network equipment. The deal is the largest secured by any Indian telecom operator this year and marks a significant step in Vodafone Idea's capital expenditure (capex) plan.

Vodafone Idea's three-year capex plan, valued at $6.6 billion (about Rs 55,000 crore), focuses on expanding its 4G and 5G networks across India. The company aims to increase its 4G coverage from 1.03 billion to 1.2 billion people and launch 5G services in key markets while enhancing capacity to meet growing data demand.

"The top priority for Vodafone Idea is to expand 4G coverage to 1.2 billion Indians and begin rolling out 5G services in key markets," the company said in a statement, adding that supplies from the newly awarded contracts will commence in the coming quarter.

Vodafone Idea CEO Akshaya Moondra highloghted the company's shift towards growth, stating, "We have entered the investment phase of VIL 2.0 and are well-positioned for a smart turnaround to capitalise on industry growth opportunities. Nokia and Ericsson have been our partners since the beginning, and we are excited to start a new partnership with Samsung as we enter the 5G era."

Moondra’s comments highlighted Vodafone Idea's ambitions to strengthen its network infrastructure as it seeks to improve its competitive position in the Indian telecom market. This development comes as Vodafone Idea moves forward with its strategy to enhance network capacity and better serve its growing customer base amidst increasing data consumption in the country.