Vodafone Idea (Vi) shares have witnessed a strong rally, surging over 22 per cent in the last one month amid renewed investor optimism. The stock has climbed from ₹9.99 to a fresh 52-week high of ₹12.20 in today’s trade, driven largely by expectations of possible government relief on the company’s long-pending adjusted gross revenue (AGR) dues.
Market sentiment improved after reports suggested that the government is considering an interest-free moratorium of four to five years on more than ₹83,000 crore of statutory dues owed by Vodafone Idea. AGR liabilities have remained a key overhang on the telecom operator’s balance sheet, and any relief could significantly ease its financial stress.
Adding to the positive momentum, the company informed exchanges on December 18 that its subsidiary, Vodafone Idea Telecom Infrastructure Ltd (VITIL), successfully raised ₹3,300 crore through the issuance of non-convertible debentures. The funds raised will be used by VITIL to meet its payment obligations to Vodafone Idea, enabling the company to strengthen its capital expenditure plans and support business growth.
The debenture issuance saw strong demand, with investor interest exceeding the issue size. The fundraise attracted a diversified group of marquee investors, including large non-banking financial companies, foreign portfolio investors and alternative investment funds. Vodafone Idea also said that discussions with banks are ongoing for raising long-term debt to further support its capex requirements.
Institutional interest in the stock has also improved. Domestic mutual fund holding in Vodafone Idea touched a multi-quarter high during the July–September 2025 quarter. According to the shareholding pattern, mutual funds increased their stake to 4.55 per cent in Q2FY26 from 3.88 per cent in the previous quarter. Data shows that as of July 19, 2024, mutual funds held a 6.12 per cent stake in the company. In contrast, retail individual investors’ holding declined to 12.2 per cent in Q2FY26 from 12.78 per cent in Q1FY26.
Analysts at JM Financial Institutional Securities said they continue to expect the telecom sector’s average revenue per user to grow at a compound annual growth rate of 12 per cent over FY25–FY28, supported by the consolidated industry structure. They noted that higher ARPU levels are necessary to sustain a ‘3+1’ player market and to justify Jio’s significant 5G capital expenditure, especially in light of its proposed IPO in the first half of calendar year 2026. JM Financial maintained its ‘ADD’ rating on Vodafone Idea, factoring in a slightly higher waiver of AGR dues based on recent positive developments, although it noted that the stock is currently trading above its target price of ₹11.50 per share.