Shares of telecom major Vodafone Idea Ltd (VIL) closed higher for the second consecutive session on Friday, December 19, rising nearly 6% to ₹12 per share on the NSE. The rally came after the company announced a ₹3,300-crore fundraise through secured non-convertible debentures (NCDs), a move aimed at supporting its capital expenditure plans and future business growth.The fundraising was carried out via Vodafone Idea Telecom Infrastructure Ltd (VITIL), a wholly owned subsidiary of the company. According to Vodafone Idea, the NCD issue saw strong demand from large non-banking financial companies (NBFCs), foreign portfolio investors (FPIs), and alternative investment funds (AIFs), with subscriptions exceeding the issue size.
The company said the proceeds will be utilised to strengthen its network infrastructure and support ongoing capital expenditure requirements.Vodafone Idea shares have witnessed a sharp reversal in trend over the past few months. After hitting a two-year low in August, the stock has staged a strong comeback, surging nearly 96% since then. Improved investor sentiment, backed by a series of positive developments, has helped the stock emerge as one of the top performers in recent weeks.The rally gained momentum following the company’s better-than-expected September-quarter earnings, along with reports of potential tariff hikes next year. Additionally, optimism grew after the Supreme Court allowed the government to consider full relief on Vodafone Idea’s dues, further boosting confidence.
The stock is now comfortably trading above its FPO price of ₹11, a level it crossed in mid-November after more than a year. Market participants believe this marks a significant technical milestone for the counter. Analysts expect the rally to continue, citing a favourable technical setup and improving fundamentals.As of the end of the reported quarter, Vodafone Idea’s total debt stood at ₹2.02 lakh crore. Despite the high debt burden, the company has shown signs of financial improvement.For the second quarter ended September 2025 (Q2 FY26), Vodafone Idea reported a year-on-year narrowing of consolidated net loss to ₹5,524 crore. The improvement was largely driven by lower finance costs on bank debt and an increase in average revenue per user (ARPU) following tariff hikes.