Mon Sep 23 07:10:48 UTC 2024: ## Vodafone Idea Shares Surge 10% After $3.6 Billion Equipment Deal

**Mumbai, India** – Vodafone Idea Ltd. shares surged to their upper circuit limit of 10% in early trade on Monday, following the announcement of a $3.6 billion deal with global telecom equipment suppliers Nokia, Samsung, and Ericsson. The deal, which will enable Vodafone Idea to customize its network for advanced technologies like 4G and 5G, comes as a much-needed boost for the struggling company.

The new equipment will also lead to efficiency gains in energy consumption, helping reduce operating costs. The supply of equipment is set to begin in the upcoming quarter, with Vodafone Idea prioritizing the expansion of its 4G coverage to reach 1.2 billion Indians.

This deal forms a crucial part of Vodafone Idea’s broader three-year capital expenditure plan, valued at $6.6 billion, which aims to significantly upgrade its network infrastructure. The positive news comes after a difficult week for the company, with its shares dropping 20% last Thursday following a Supreme Court ruling against a re-computation of adjusted gross revenues, which was seen as a major setback for Vodafone Idea.

Despite the surge in share price, Vodafone Idea remains under pressure. The stock has fallen 27.5% on a year-to-date basis and 0.43% in the last 12 months. While the deal has brought a much-needed ray of hope, analysts remain cautious. Out of 22 analysts tracking the company, four maintain a ‘buy’ rating, three recommend a ‘hold,’ and fifteen suggest ‘sell,’ with an average 12-month price target implying a 2.7% downside.

The stock’s future trajectory remains uncertain, but the significant investment in network infrastructure and the commitment to expand 4G coverage could pave the way for a turnaround for Vodafone Idea.

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