Vodafone Idea Shares Recover 12% in Two Sessions Following ₹5,836 Crore Investment Boost: Here’s What Experts Say

Shares of Vodafone Idea extended their winning run to the second day on Friday, January 2 after the stock jumped by nearly 2% on today’s morning session. The stock hit a high of ₹11.95 on the BSE in early morning trade. In the two trading days, the telecom stock has rallied 11%, recouping the sharp fall seen on Wednesday, following reports of a partial moratorium by the government on its adjusted gross revenue (AGR) dues.In the last one year, Vodafone Idea shares have gained a substantial 47% amid optimism around a potential AGR dues resolution, meaningful improvement in ARPU and narrowing of losses.

Additionally, the company on Wednesday evening announced that it has reached an agreement with the Vodafone Group and executed an amendment to the original Implementation Agreement dated March 20, 2017, formalising the promoters’ commitment to infuse ₹5,836 crore into the company.Under the approved structure, ₹2,307 crore will be infused in cash over the next 12 months, while the remaining ₹3,529 crore will be raised by the promoters through the sale of equity shares held by certain Vodafone Group shareholders.The company further clarified that a portion of the contingent liability adjustment mechanism has been secured through the pledge of 328 crore equity shares by certain Vodafone Group shareholders for a period of five years.

Brokerage Emkay Global continued to maintain its 'SELL' rating on Vodafone Idea stock with a target price of ₹6, despite government relief packages, as it believes the company's leverage remains high.The domestic brokerage said that the telco’s financial position remains stressed despite repeated relief packages. "Vi's pre-IndAS116 annualized EBITDA is Rs8.98bn, which is 6.7% of its spectrum debt with cash balance of Rs 30.8 bn as of end-Q2FY26. The management gave guidance for capex spends of Rs75-80bn for FY26. With this, leverage remains high even without AGR dues, and the government will need to consider a plan for reducing spectrum debt. We believe that further capital infusion and restructuring of the spectrum liabilities is crucial for long-term sustainability of the company,” it said.Emkay added that it has maintained its ‘Sell’ rating on the stock due to the high leverage, high valuations, and lack of clarity on government stance on spectrum debt.