Vodafone Idea stock gains up to 9% as telco continues with its mega Rs 55,440 crore capex: Here's Anil Singhvi's view

Vodafone Idea (VIL)  shares after ending with mild gains in Friday's session started sharply higher in Monday's session as the beleaguered telecom company on Sunday said that it had concluded a deal worth $3.6 billion (around Rs 30,000 crore) with Nokia, Ericsson, and Samsung for the supply of network equipment over the next three years, marking the Indian company's largest capital expenditure (capex) investment that paves the way for rapid network upgradation.

The development marks the first step towards the rollout of Vodafone Idea’s three-year capex plan to the tune of $6.6 billion (Rs 55,000 crore). Also, it is Voda Idea's first-ever investment of this scale. 

The deal has been signed for network equipment supply for the next three years in order to add its 4G subscriber base as well as 5G network in the country.

The stock in early trade surged up to 9 per cent to day's high price of Rs 11.39, while at the time of writing this copy it was up over 8 per cent at Rs 11.34 per share on the BSE.

Anil Singhvi's view on VIL's mega capex plan

The expert said that while the move shall instill confidence among investors and give them a ray of hope, he may likely decide future course of action after listening to the concall. Till then he asks investors in the stock to wait, wait and wait.

The company's new Rs 30,000 crore investment signals management's confidence, he added.

Vodafone FPO

The debt-ridden company raised Rs 18,000 crore through a follow-on public offer (FPO). 

In order to finance its debt, the company is currently in talks with leading banks in the country. At 2:30 pm, the company's concall is scheduled.