Vodafone Idea’s stock witnessed a strong rally on December 19, rising nearly 6% after the telecom operator announced a major fundraising move. The shares have now delivered close to 100% returns in just four months, supported by improved financial sentiment, fundraising success, and regulatory relief.
Vodafone Idea shares ended higher for the second straight session on December 19. The stock closed at ₹11.95, up 5.75%, following the company’s announcement that it raised ₹3,300 crore through secured non-convertible debentures (NCDs).
The funds have been raised via the company’s subsidiary Vodafone Idea Telecom Infrastructure Limited (VITIL) and will be used for business expansion and capital expenditure (capex). According to regulatory filings, the NCD issue saw strong interest from large non-banking financial institutions, foreign investors, and alternative investment funds, with demand exceeding the issue size.
The fundraising comes at a crucial time for Vodafone Idea, which has been under intense financial pressure due to massive government dues. The company had been facing the risk of insolvency as its total outstanding liabilities to the government had reached nearly ₹2 trillion.
Recently, Vodafone Idea received relief from the Supreme Court, which, in an October order, allowed a review of these dues. This development has significantly improved investor sentiment around the stock.
Vodafone Idea’s total government liabilities stand at around ₹2 trillion. Of this, approximately ₹78,500 crore relates to Adjusted Gross Revenue (AGR) dues as of the end of September. The remaining amount is linked to wireless spectrum payments, which are payable to the government in long-term instalments.
Analysts believe the company’s future largely depends on the extent of relief or concessions provided by the government. Any support could give Vodafone Idea a chance to stabilise and grow.
Meanwhile, the company plans to spend ₹7,500–8,000 crore in the current financial year on strengthening its network and improving services. It has already spent ₹4,200 crore in the first half of the fiscal year, primarily to enhance 4G network coverage and initiate 5G services.
Vodafone Idea shares have delivered impressive returns in recent months. Since August, the stock has surged nearly 100%, rebounding sharply from its two-year low.
The recovery has been driven by better-than-expected September quarter results, expectations of mobile tariff hikes next year, and optimism following the Supreme Court’s decision allowing the government to reconsider full relief on the company’s dues.
Currently, Vodafone Idea shares are trading above their FPO price of ₹11, a level they crossed again in mid-November after nearly a year. Market experts say the stock’s technical setup looks strong.
According to Sumeet Bagadia of Choice Broking, if the stock sustains above ₹12.10, further upside is possible, with potential targets in the ₹14–₹16 range. However, investors are advised to maintain a stop-loss at ₹10.80 to manage downside risk.