Vodafone Idea Share News: Shares of Vodafone Idea rose nearly 5 per cent on May 30, 2022, amid the report that Amazon is likely to invest Rs. 20,000 crores into the telecom operator. Once the speculation went public, Vodafone Share touched an intra day high of Rs. 9.36, rising 4.81 per cent on the BSE. The large cap stock has gained 7.33% in two days. Total 223.91 lakh shares of Vodafone Idea changed hands amounting to a turnover of Rs. 20.46 crores on the Bombay Stock Exchange. Market cap of the tele company rose to Rs. 29, 934 crores.
Amazon investment in Vodafone Idea
Vodafone Idea has been hunting for investors to raise capital and repay its debt. The telecom company also plans to utilize the proceeds of the fundraising for investing in the network.
Amazon may also be interested in investing in Vodafone Idea as it remains the only major cloud services giant without a telecom partner while Vodafone Idea is the only telecom operator without the investment from a major US Tech company.
Rumours of Amazon investing in #vodafoneidea doing rounds.
— RS (@WithRitesh) May 30, 2022
If happens, it should be positive for #Industower pic.twitter.com/vxfVqgYr9A
Amazon may invest in Vodafone Idea: Why is it significant?
The investment from Amazon in Vodafone Idea will not only breathe a new life in the telecom company but will also enable it to compete with the rivals Jio and Airtel at a time when the Government of India is preparing to auction the fifth generation of telecom spectrum.
How Government helped Vodafone Idea?
Earlier, the Government had also helped Vodafone Idea to return from the brink of bankruptcy.
The telecom company had allowed the Government to convert a major chunk of its adjusted gross revenue due and the interest payments into equity. However, the persistent loss of the subscribers weighed on the company even as the sector managed to substantially rise the tariffs in the past 3 years.
Investments by US tech giants in Indian Telecom operators
In the past two and a half years, US Tech Giants Google, Facebook, and Microsoft have invested in the top two telecom operators in India- Bharti Airtel and Reliance Jio Infocomm for strengthening their cloud offerings in India.
As per the International Data Corporation Report, India’s public Cloud Market is expected to touch the revenues of nearly $11 billion by 2025 from $4.5 billion projected for the year 2022.
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