Vodafone Idea Shares Rise 3% on Market Recovery as Small Cap Stocks Shine

Shares of Vodafone Idea Ltd (NSE: IDEA) climbed 3% to ₹11.48 on Wednesday, up from the previous close of ₹11.13. The gain comes amid a broader market recovery, with small-cap stocks leading the charge. The stock is back in the spotlight after witnessing a sharp drop yesterday driven by reports of potential government relief on the company’s hefty adjusted gross revenue (AGR) dues. Multiple reports say the government is considering an interest-free moratorium of four to five years on over ₹83,000 crore of Vodafone Idea’s AGR-linked dues.On 15 December 2025, Vodafone Idea surged more than 3% intraday to hit a fresh 52-week high of about ₹12.03 on the moratorium headlines—then pared gains and even dipped into the red later in the session, a pattern consistent with headline-driven momentum and profit-taking.

On December 16, the stock went into consolidation phase below that high, suggesting the market is waiting for clarity on the final contours of relief. A key part of the current narrative is not only a moratorium, but also a potential review/reconciliation of AGR liabilities. Separately, Vodafone Idea has also made exchange disclosures around developments connected to the AGR matter. For example, in a 4 November 2025 filing, the company informed exchanges about a Supreme Court order modifying a paragraph of an earlier order related to the AGR matter (the filing attached the court order).Separately, Vodafone Idea’s own exchange filing dated 9 December 2025 states its board approved issuing a corporate guarantee and pledging shares in connection with a proposed issuance of unlisted, unrated, secured, redeemable non-convertible debentures up to ₹3,300 crore by Vodafone Idea Telecom Infrastructure Limited (VITIL), a wholly owned subsidiary.

Vodafone Idea has repeatedly flagged its inability to service the AGR dues and sought government support. The Centre is the company’s largest shareholder, holding a 48.99 per cent stake after converting part of Vi’s past dues into equity. Last month, the Supreme Court also allowed the government to frame a special relief package for the telco covering its entire AGR liabilities. Resolution of the AGR issue could pave the way for Vodafone Idea to raise fresh capital, including its planned Rs 25,000 crore fundraising. A successful equity infusion would dilute the government’s stake and could also give the Centre the option to convert additional dues into equity, further easing the company’s financial stress. Currently, the Aditya Birla Group and the UK’s Vodafone Group Plc hold 9.50 per cent and 16.07 per cent stakes in the company, respectively. Despite bleeding money and losing subscribers, shares of Vodafone Idea have jumped nearly 45% this year so far. "It is amply clear, based on all the interventions, it's quite evident that they (government) don't want a duopoly market.