Vodafone idea shares: The shares of telecom company Vodafone Idea have seen a great rise for the last two days. The company’s shares jumped up to 7.5% during trading on 25 August today. Earlier on Friday 23 August, its shares also saw a rise of about 7 percent. During the last two business days, this stock has jumped up to 16 per cent and is now trading around Rs 7.60. This boom has come at a time when a report claimed that the Prime Minister’s Office (PMO) may soon decide on the relief package proposed for the company.
According to a report by Mint, the Department of Telecommunications (DOT) has sent an informal note to the PMO. It suggested options to give Vodafone Idea a variety of relief. It also includes the option to increase the existing Morotorium period for AGR outstanding payment.
Apart from this, the telecom department has also suggested options such as giving additional time to the company to pay liability, reducing the amount of annual payment, penalty on AGR dues and rebate in interest.
If PMO approves these proposals, then the company can get great relief. However, Moneycontrol could not independently confirm this report.
Vodafone idea’s difficulties
Vodafone Idea is currently outstanding an AGR of about Rs 83,400 crore. From March 2025, the company will have to pay around ₹ 18,000 crore every year. The total government liability of the company, including interest and penalty, is said to be around ₹ 2 lakh crore.
The company has already warned many times that its existence is in danger without funding support. Banks are also hesitant to give loans due to its weak financial health. Currently, the company has 19.8 crore subscribers and more than 18,000 employees.
Plan to raise funding
The company’s CEO Akshay Mundra recently said that Vodafone Idea is trying to raise funds with non-banking options to meet its capex needs. He said that the company is working towards raising the amount of less than ₹ 25,000 crore, but to continue the investment bicycle.
At the same time, the company has formally appealed to the government that the AGR dispute should be resolved before the deadline of March 2026, so that banks can get confidence and open funding support.
Vodafone Idea Shares: Buy, Sell or Hold?
Brokerage houses have given different opinions on the shares of Vodafone Idea. Brokerage firm Motilal Oswal has rated the shares of Vodafone Idea ‘Sell (Sell)’ and has fixed the target price of Rs 6. Brokerage says that its subscriber base is expected to continue further. In view of this, it has cut the company’s revenue and Ebitda estimates by 4-5% for FY 2027 to 2028.
At the same time, ICICI Securities has advised to hold this stock with a target price of Rs 7. Brokerage says that the company has funding for the cost of capex until the second quarter of FY26. Further investment will depend entirely on new funding arrangements and AGR solutions.
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