Recently We have came across multiple articles in internet and across different apps that Vodafone Idea(VI) share is going to hit new heights. Lets analyse this news and factify it.
This rumour is based on few facts.
- VI’s 13500 crore rupees equipment deal with Nokia
- VI’s 3.6 billion dollars deal for supply network equipment
Recently Vodafone has signed 13500 crore rupees deal with Finland’s Nokia group to buy equipment to roll out 4G and 5G network expansion over the span of three years.
source: https://economictimes.indiatimes.com/industry/telecom/telecom-news/vodafone-idea-seals-rs-13500-crore-equipment-deal-with-nokia/articleshow/113772444.cms?from=mdr
In another similar news which reads that VI has signed a deal with Nokia, Ericsson and Samsung for buying equipment to enhance the user experience.
source: https://economictimes.indiatimes.com/industry/telecom/telecom-news/vodafone-idea-concludes-3-6-bn-deal-with-nokia-ericsson-samsung-to-boost-network-equipment-supply/articleshow/113565405.cms?from=mdr
Factify: Both of the above article seems to be different version of same story so there is only one news that VI has signed a deal to buy equipment and based on that rumours of VI’s share price is spreading in the market. Now the reason for VI’s share’s downfall is due its inability to pay its dues to government and with deals mentioned above its not going to get any new money for its business Instead it has to pay money to these companies for buying equipment. Now for VI shares to go up the company needs to become profitable which can only happen if its customer base increases for this the new deal of buying new equipment can help but that can take time. So based on above two news VI’s share can not hit new heights.