Vodafone Idea Shares Gains 4% Over Two Days as Govt Nears AGR Relief Decision

Vodafone Idea share price rallied over 4% in early trade on Wednesday despite a sell-off in the broader Indian stock market today. Extending gains for the second straight session, the telecom stock rose as much as 2.07%  to ₹10.34. The rally  comes as the Union Government is seen moving closer to finalising its stance on the telco’s relief proposal related to adjusted gross revenue (AGR) dues.Vodafone Idea share price has rallied 9% in one month and has jumped by 58% in three months. The telecom stock has rallied 30% on a year-to-date (YTD) basis, while it has gained 26% in one year. Vodafone Idea share price has risen 25% in the past three years.

Speaking to ET NOW Swadesh, Rajesh Palviya said that moves in Vodafone Idea shares are affected by news. He said that though the long-term structure of Vodafone Idea is weak, the counter could show positive moves on anticipation of AGR relief. "Vodafone Idea share are making recovery attempts as we get news surrounding to the AGR relief matter. In the near term, Vodafone Idea shares are facing resistance at Rs 10.70.

If Vodafone Idea shares give a breakout above Rs 10.70 on closing basis, then my view is that the rally will extend. Above Rs 10.70, the target price for Vodafone Idea will be Rs 12," the market expert said. On the downside, Vodafone Idea shares have immediate support placed at Rs 9.50, the market expert said. "If the view is short-term, then my suggestion is to book profit above the breakout of Rs 10.70," he added. The next move in Vodafone Idea will be decided by the government's stance on the AGR relief matter. "That will be a key next trigger for Vodafone Ideal. I am expecting Vodafone Idea to trade in a range of Rs 9.50 to Rs 10.70 until get a clarity."

In September, Vodafone Idea had sought a waiver of penalty and interest on an AGR demand worth Rs 9,450 crore raised by the Department of Telecommunications (DoT), arguing that much of it pertained to the pre-FY17 period already settled by the apex court in 2020. Out of this amount, Rs 2,774 crore relates to post-merger liabilities of Vodafone Idea, while Rs 5,675 crore pertains to pre-merger dues of the Vodafone Group.The government became the largest shareholder in Vodafone Idea in March this year after converting dues worth Rs 36,950 crore into equity, taking its stake to nearly 49 percent. Earlier, in 2023, the Centre had picked up a 33 percent stake in lieu of statutory dues exceeding Rs 16,000 crore.