Shares of Vodafone Idea (Vi) surged over 9% on Thursday, January 1, after the telecom operator announced a promoter-led capital infusion of around ₹5,836 crore, aimed at strengthening its balance sheet and easing liquidity pressure. According to an exchange filing, the infusion structure includes ₹2,307 crore to be brought in as cash over the next 12 months. The remaining ₹3,529 crore will be raised by the promoters through the sale of equity shares held by certain Vodafone Group shareholders. The decision was approved at a board meeting held on Wednesday, December 31, 2025.
“We wish to inform you that the company has reached an agreement with the Vodafone Group and entered into an amendment agreement dated December 31, 2025, to the Implementation Agreement dated March 20, 2017, as amended with its promoter/promoter group shareholders,” Vodafone Idea said in its regulatory filing. Following the announcement, Vodafone Idea shares climbed as much as 9.57% to an intraday high of ₹11.79 apiece.
The rally comes a day after Vodafone Idea shares plunged nearly 15%, surprising investors despite a Cabinet decision to freeze recovery of the company’s adjusted gross revenue (AGR) dues worth ₹87,695 crore. Market participants had expected the move to offer stronger relief and stabilise the stock. The Cabinet’s decision involves a temporary freeze rather than a complete waiver of AGR dues. This pause provides Vodafone Idea additional time to manage cash flows, make selective investments, and avoid immediate default, but does not eliminate the liability.
According to a PTI report citing sources, the Union Cabinet has approved a relief package under which Vodafone Idea’s AGR dues, frozen as of December 31, will be payable over a 10-year period from FY32 to FY41. The telecom department will reassess the dues during this period. The report added that AGR dues related to FY18 and FY19 will be payable from FY26 to FY31, with no change in the existing payment terms. Vodafone Idea currently owes around ₹83,400 crore in AGR dues, with annual payments of nearly ₹18,000 crore scheduled to begin from March 2025.
Despite recent relief measures, Vodafone Idea remains under severe financial strain. The debt-laden operator has repeatedly warned that it cannot sustain operations without fresh funding support, as banks remain cautious about extending credit due to its weak balance sheet.Vodafone Idea employs over 18,000 people and serves nearly 198 million subscribers across India.