Vodafone Idea shares surge over 15% in 4 days: Here's why
Vodafone Idea shares
rallied over 15% in the past four trading sessions to Rs 7.55, driven by reports of a major fund-raising effort and expectations of potential government relief on dues.
According to a Bloomberg report earlier this week, Vodafone Idea is in talks to raise about Rs 25,000 crore ($2.9 billion) in loans to strengthen its network and compete more effectively with rivals Reliance Jio and
Bharti Airtel
. The
State Bank of India
is expected to lead a consortium of lenders, with the loan likely to be a mix of domestic and foreign borrowings, and a tenure of around 10 years, the report said, citing unnamed sources.
Backed by billionaire Kumar Mangalam Birla, Vodafone Idea had previously delayed fund-raising due to concerns over its financial health and large outstanding dues to the government. However, with growing subscriber losses and signs of possible government support, the company has revived its efforts.
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A successful loan deal would help the telco fund capex and accelerate network rollout, potentially aiding its turnaround strategy.
Investor sentiment has also been lifted by reports that the Indian government may offer relief on Vodafone Idea's Rs 84,000 crore in dues, including adjusted gross revenue (AGR) liabilities. Some media reports suggest the government is considering extending the repayment tenure from six to twenty years.
However, in an exchange filing on 24 June 2024, Vodafone Idea clarified, "We have not received any communication from the government in relation to the above-reported matter. As and when there is any development that requires disclosure, we will do the needful."
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In May, Vodafone Idea's board had approved a plan to raise Rs 20,000 crore through a mix of equity and debt. The recent reports of bank-led loan discussions indicate further funding plans may be underway.
In April, the government raised its stake in the company to 48.99% after converting spectrum-related dues into equity.
On 18 June 2025, Vodafone Idea announced a partnership with U.S.-based AST SpaceMobile to bring direct-to-device (D2D) satellite connectivity to India. The move is expected to support network coverage, especially in remote areas, and is part of the company's broader technology upgrade plans.
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