Telecom stocks witnessed a sharp upsurge in early morning trade on November 26, amid reports that the Union Cabinet approved the waiving of bank guarantees for telecom operators. Vodafone Idea shares jumped 14.20% to ₹7.66 apiece, while MTNL shares surged nearly 9% to ₹51.45 apiece.
On Monday, the Union Cabinet approved the waiver of bank guarantees for telecom operators on spectrum purchased before 2022, Moneycontrol reported, citing sources.
The move has come as a relief to Vodafone Idea, which owes the government over ₹24,700 crore in bank guarantees (BG), sources told the news agency. Indian telecom operators, including Airtel and Vodafone Idea, collectively hold more than ₹30,000 crore in BG obligations
