On Monday, October 7, during intraday trading, Vodafone Idea shares fell 9%, reaching a low of Rs 8.91 per share. Following the company’s failure to present bank guarantees by the deadline, Vodafone Idea’s stock price dropped. Vodafone Idea shares were down 7.14 percent at Rs 9.10 per share at 1:04 PM. In comparison, the BSE Sensex traded 0.66 per cent down at 81,068.39 about the same time.
Issues Notice for Non-Compliance
Vodafone Idea was called out in the DoT’s notice for failing to provide the required bank guarantees for payments related to the spectrum auction. This development arises while the DoT meets with the finance ministry to explore the potential waiver of the bank guarantee requirement, but no formal decision has been reached.
The joint venture established by Vodafone Group in the UK and Aditya Birla Group in India was the reason behind the notice. Apparently, the joint venture failed to furnish the necessary bank guarantees on time for the outstanding amounts resulting from spectrum auctions held earlier than 2022.
Stock Price Performance
Given this context, today’s trade of Vodafone Idea shares saw significant declines. Nevertheless, it bounced back from the day’s low to trade at ₹9.18 a share on the BSE, down 6.33% at 11:35 a.m. The stock had hit a 52-week high of ₹19.15 on June 28, 2024. The share price of Vodafone Idea has decreased for the past five days in a row. During this time, the stock has fallen 17%, even after today’s losses from the day’s lows.
The stock has dropped 44% so far this year, severely depleting investor capital.
Vodafone Idea Share Price Today
Following a warning from the Department of Telecommunications (DoT) about the non-payment of bank guarantees needed to settle past spectrum auction dues, shares of Vodafone Idea fell 6.64 percent to Rs 9.28 on the BSE today. The joint venture between the Vodafone Group in the UK and the Aditya Birla Group in India failed to deliver the required bank guarantees on time for spectrum dues from auctions completed before 2022, according to an Economic Times story. This is why the notice was issued.
