Vodafone ringer tone gets better

Shares of Vodafone Idea were trading firm today, up about 0.8–1% over the previous close of Rs 10.05, with intraday trades largely confined to a Rs 10.05–10.22 band. The stock continues to move within its 52-week range of Rs 6.12–11.08, implying a market capitalisation of around Rs 1.10 lakh crore.

The immediate trigger for the stock is fresh fund-raising activity at the tower and infrastructure arm. According to market sources, not confirmed news, Vodafone Idea Telecom Infrastructure, a wholly-owned subsidiary, has reduced the size of its proposed bond issue to about Rs 3,200 crore from the earlier Rs 5,000 crore. The unit now plans to raise a major portion via two-year bonds at a yield of around 12%, with the balance through three-year-and-two-month bonds at about 14%, both carrying a one-year call option and backed by a parental guarantee. The placement, aimed at network expansion and 5G roll-out, is targeted for completion before end-December 2025.

Market expert S P Tulsian highlights a cluster of event-driven triggers for the stock, including ongoing discussions with the government on AGR-related relief, recent easing of legacy tax overhangs and the possibility of a large strategic or PE-led capital infusion going forward. In his view, these factors, coupled with improving operating metrics, underpin the constructive undertone seen in recent buying interest around the Rs 10 zone.

Operationally, the bond plan follows Q2 FY26 results where Vodafone Idea reported revenue of Rs 11,195 crore, a YoY growth of 2.4%, with ARPU rising to Rs 180 from Rs 166 and the total subscriber base at 19.67 crore, including 12.78 crore 4G/5G users. The company has expanded 4G population coverage to over 84% as of September 2025 and is progressing with its 5G roll-out across priority circles. The Rs 3,200-crore infra bond issue sits within a broader Rs 20,000-crore fund-raising roadmap and is being viewed as interim, high-coupon but short-tenor funding ahead of potential clarity on AGR relief and longer-tenor bank or strategic capital in 2026.