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Vodafone Idea Shares Surge Sharply, Gain 16% in Just 2 Days
Vodafone Idea Shares:
Telecom company Vodafone Idea shares have seen a strong rally for the past two days. On 25th August, the stock surged by about 7.5% during trading. Earlier, on 23rd August (Friday), it had already risen by nearly 7%. Over the past two sessions, the stock has jumped by almost 16% and is now trading around ₹7.60.
This surge came after a report suggested that the Prime Minister’s Office (PMO) may soon take a decision on a proposed relief package for the company.
According to a report by Mint, the Department of Telecommunications (DoT) has sent an informal note to the PMO, suggesting several relief measures for Vodafone Idea. These include granting an additional two-year extension for AGR dues repayment, i.e., extending the existing moratorium period.
In addition, the telecom department has proposed other options such as giving the company more time to clear its liabilities, reducing the annual payment amount, and waiving penalties and interest on AGR dues.
If the PMO approves these proposals, the company could get significant relief. However, tradewithmohib has not independently verified this report.
Vodafone Idea’s Struggles
Vodafone Idea currently owes about ₹83,400 crore in AGR dues. From March 2025, the company will have to pay around ₹18,000 crore annually. Including interest and penalties, its total government dues are estimated to be nearly ₹2 lakh crore.
The company has repeatedly warned that without funding support, its survival is at risk. Banks, too, are hesitant to lend due to its weak financial health. At present, the company has around 198 million subscribers and over 18,000 employees.
Fundraising Plans
Vodafone Idea CEO Akshaya Moondra recently stated that the company is trying to raise funds through non-banking options to meet its capex requirements. He said the company is not aiming to raise the full ₹25,000 crore, but a smaller amount sufficient to keep the investment cycle running.
At the same time, the company has formally appealed to the government to resolve the AGR dispute before the March 2026 deadline, so that banks gain confidence and funding support becomes available.
Vodafone Idea Shares: Buy, Sell, or Hold?
Brokerage firms have given mixed opinions on Vodafone Idea shares.
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Motilal Oswal has given a ‘Sell’ rating with a target price of ₹6. It expects the subscriber base to continue declining and has cut its revenue and EBITDA estimates for FY27–FY28 by 4–5%.
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ICICI Securities has advised to ‘Hold’ the stock with a target price of ₹7, stating that the company has funding available for capex until Q2FY26. However, future investments depend entirely on new funding arrangements and the resolution of the AGR issue.
Disclaimer: The views and investment advice shared on tradewithmohib are those of experts/brokerage firms, not of the website or its management. tradewithmohib advises users to consult a certified financial expert before making any investment decisions.
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