Vodafone Idea Shares Rise Over 15% In 4 Sessions; Will The Rally Continue?

Last Updated:June 27, 2025, 14:15 IST

Vodafone Idea shares have surged over 15 per cent in the last four trading sessions; What investors should know?

Vodafone Idea Shares: Vodafone Idea shares have surged over 15 per cent in the last four trading sessions, reaching Rs 7.55, buoyed by reports of a major fund-raising initiative and hopes of government relief on outstanding dues.

According to a Bloomberg report earlier this week, the telecom operator is in advanced discussions to raise around Rs 25,000 crore (approximately $2.9 billion) in loans aimed at strengthening its network infrastructure and enhancing competitiveness against rivals like Reliance Jio and Bharti Airtel. The State Bank of India is expected to lead a consortium of lenders, with the loan likely to comprise both domestic and foreign borrowings and carry a tenure of about 10 years.

Supported by billionaire Kumar Mangalam Birla, Vodafone Idea had previously stalled its fundraising plans due to its weak financials and large government dues. However, mounting subscriber losses and renewed optimism over possible government support have prompted the company to revive its funding efforts. A successful loan agreement would aid Vodafone Idea in financing capital expenditure and accelerating its network expansion, key components of its turnaround strategy.

Investor sentiment has also been buoyed by speculation that the government may offer relief on Vodafone Idea’s Rs 84,000 crore in dues, which include adjusted gross revenue (AGR) liabilities. Reports suggest that authorities are considering extending the repayment period from six to twenty years. However, in an exchange filing dated June 24, 2024, the company clarified that it had not received any formal communication from the government on the matter and would disclose any developments as required.

Earlier in May, the Vodafone Idea board approved plans to raise Rs 20,000 crore through a combination of equity and debt. The latest reports of bank-led loan discussions point to additional funding efforts underway. In April, the government converted spectrum-related dues into equity, increasing its stake in the company to 48.99 per cent.

In a strategic move to expand its technological capabilities, Vodafone Idea on June 18 announced a partnership with US-based AST SpaceMobile to introduce direct-to-device (D2D) satellite connectivity in India. This collaboration is expected to enhance coverage in remote regions and forms a part of the telecom company’s broader digital transformation agenda.

Technical View

Vodafone Idea’s stock has recently shown a strong bullish pattern, registering a “twin breakout” on technical charts — a signal where the share price surpasses two key resistance levels. This breakout indicates a potential upside of around 13 per cent from current levels. Despite this positive technical setup, the company continues to struggle with financial challenges. It posted a net loss of Rs 7,166 crore in Q4 FY25 and remains heavily reliant on external funding.

While the technical breakout has sparked fresh interest among traders, the stock still trades well below its 52-week high of Rs 19.15, reflecting broader concerns about its fundamentals. Analysts advise caution, noting that while the breakout offers short-term trading opportunities, the company’s long-term prospects remain tied to its ability to improve its financial position and compete effectively in the telecom space.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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