Vodafone Idea jumps up
Vodafone Idea shares stayed in focus after a Bloomberg report indicated parent Vodafone Group Plc is exploring a proposal to shore up the telco’s capital position without an immediate cash infusion.
And our Editor, Mr.SP Tulsian’s take on the same -
Vodafone Idea has been granted the long-awaited Rs. 23,649 cr relief on AGR dues (Rs. 87,695 cr reassessed to Rs. 64,046 cr) and news report now suggest it may be close to securing Rs. 25,000 cr long term loan from a consortium of banks, led by SBI.
This funding is part of Vodafone Idea’s 3 year turnaround plan, which comprises Rs. 45,000 cr capex for network upgrade. In addition to the Rs. 25,000 cr loan term loan, company is seeking to raise Rs. 10,000 cr for short term working capital loan. UK-based Vodafone Plc, which owns a 19% stake in Vodafone Idea, is considering transferring part of its shareholding to the company itself for the Indian company to hold in its treasury, to leverage the borrowing against the proposed holding of Vodafone Group.
Appointment of Mr. Kumar Mangalam Birla, as the Non-Executive Chairman of the Board of Vodafone Idea from 5th May 26 while Mr. Ravinder Takkar, has been made as the Non-Executive Vice Chairman of the Board of Vodafone Idea from 5th May 26, have sent the confirmed signal of AV Birla Group continuing as Promoter of the Company, may be seen buying stock from the Open Market to raise the stake in the company, made the stock seen to be positive.
It has invested over Rs. 16,000 cr so far, funded via FPO proceeds, which has stopped subscriber losses, in Feb & Mar 2026. Over the next 3 years, Vodafone Idea aims to clock double-digit annual revenue growth and triple EBITDA from Rs. 19,000 cr currently. If it achieves these, then it may be able to organically meet the Rs. 50,000 cr spectrum payment, due over the next 3 years – Rs. 7,000 cr in FY27E, Rs. 15,000 cr in FY28E, and Rs. 28,000 cr in FY29E.
After the AGR relief, company will now focus on strengthening business operations and growth, with EBITDA being positive and interest relief boosting bottomline, besides removing liquidity constraints. According to latest Telecom Regulatory Authority of India (TRAI) data, Vodafone has wireless subscriber base of 198.48 million (15.68% market share) as of Mar 2026. Talk of induction of the Foreign Strategic Investor into the company, as also Adani Group interested in acquiring Government’s 49% stake at around Rs. 20 per share may also revive. All these hopes will be keeping positive interest on the stock, with support of Rs. 12, to be maintained from hereon, with Target of Rs. 20 expected in this FY.
Mr.Tulsian’s opinion on the stock price - Buy for a target of Rs. 12.70 in 1 month and Rs. 13.20 in the next 3 months, as stock has risen by about 10% yesterday, on higher cash volume of 62 lakh shares, against 60 cr shares seen on 5th May, is likely to see this buying continuing, which was expected and have stated of stock likely to move to new 52 week high, in this month, breaching its earlier high of 12.80, seen on 31st Dec, with stock likely to give a decisive breakout with closing seen at or above 13, by end of this Month, its near term strong resistance levels. OI of 610 cr shares are seen largely held by strong hands on the long side, with short seen held by weak retail traders, which makes stock extremely bullish.