Vodafone Idea share price closes 6% higher after fundraise move; stock up nearly 100% in under four months

Telecom major Vodafone Idea share price closed higher for the second straight session on Friday, December 19, rallying 6% to ₹12 apiece after the company announced that it raised ₹3,300 crore through secured non-convertible debentures (NCDs), which is expected to support the company’s capital expenditure programme and business growth.

The fundraise was carried out through Vodafone Idea Telecom Infrastructure Ltd (VITIL), a subsidiary of Vodafone Idea. Interest in the issue from large non-banking financial companies, foreign portfolio investors, and alternative investment funds exceeded the NCD issuance, the company said in its Wednesday filing.

This fundraise came just eight weeks after the financially stressed company received a fresh lease of life from the Supreme Court. The telco is emerging from a difficult period as pending dues to the central government mounted to ₹2 trillion, putting the company at risk of bankruptcy. The dues are currently under review following a late-October Supreme Court order.

Of the ₹2 trillion dues, Vodafone Idea’s AGR liabilities alone stood at ₹78,500 crore as of the end of September. The remaining amount largely comprises payments owed to the government for wireless spectrum purchased in auctions.

Analysts have flagged the massive size of the dues and said the company’s future depends on the waivers it may ultimately receive from the government.

Meanwhile, in the current financial year, the company plans to spend between ₹7,500 crore and ₹8,000 crore on capital expenditure. In the first half of the current financial year, it has already spent ₹4,200 crore to improve 4G network coverage and roll out 5G services.

Vodafone Idea share price delivers nearly 100% returns

Vodafone shares have seen a strong reversal in trend in recent months, as they have remained higher since August, driven by multiple positive triggers that have set the stage for the stock to emerge as a top performer on Dalal Street in 2025.

After touching a two-year low in August, the shares staged a solid recovery and have since surged 96%, as sentiment towards the telecom major improved amid the company’s better-than-expected September-quarter numbers. Reports of further tariff hikes next year, along with the Supreme Court allowing the government to consider full relief on Vodafone Idea’s dues, have also supported the ongoing rally.

The stock is now comfortably trading above its FPO price of ₹11, which it first crossed in mid-November after a gap of over a year. Analysts expect the stock to extend its rally amid a favourable technical setup.

Sumeet Bagadia, Executive Director at Choice Broking, said, “The Vodafone Idea share price is on the cusp of a technical breakout at the ₹12.10 per share level. A decisive breakout above this level would signal further upside in this telecom stock. One can hold Vodafone Idea shares, as the stock may touch the ₹14 and ₹16 levels, given this positive breakout outlook. However, investors must maintain a strict stop-loss at ₹10.80 per share.”

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