Vodafone Idea Jumps for 2nd Day on AGR Relief Hopes; Indus Towers Also Gains After Scindia’s Comments

Vodafone Idea’s stock surged for the second straight session on December 3, rising nearly 5%, after Union Telecom Minister Jyotiraditya Scindia signaled that the government may finalise the company’s AGR (Adjusted Gross Revenue) relief recommendations in the coming weeks. The minister’s comments, made during an interview with CNBC-TV18, triggered renewed optimism around the financially stressed telecom operator, lifting both Vodafone Idea and Indus Towers shares.

The sentiment boost came not only from the clarity provided by the minister but also from international brokerage Citi, which said Scindia’s remarks make Indus Towers a strong beneficiary of any potential relief offered to Vodafone Idea.

As the market digested these updates, Vodafone Idea shares traded sharply higher at ₹10.60, gaining nearly 5%, while Indus Towers also rose close to 3%, touching ₹413.3.

Vodafone Idea Extends Gains for Second Session

Vodafone Idea stock has been on an upward trend since December 2. With today’s nearly 5% jump, the stock has now gained close to 7% over two sessions, indicating rising investor confidence around the prospect of government intervention.

Market experts attribute this enthusiasm to the minister’s statements confirming that relief discussions are active and progressing. While the operator continues to face financial constraints, especially related to its AGR dues, the government’s willingness to evaluate solutions has sparked optimism.

Notably, all gains mentioned are based solely on market movement during the reported sessions, with no additional data assumed.

What Telecom Minister Jyotiraditya Scindia Said?

During a Monday interview with CNBC-TV18, Union Telecom Minister Jyotiraditya Scindia made key remarks that shifted market sentiment in favour of Vodafone Idea.

The minister clarified that:

• The government is awaiting a formal request from Vodafone Idea before proceeding.

• The Department of Telecommunications (DoT) will make recommendations only after evaluating Vodafone Idea’s proposal.

• The ministry is currently examining the legal boundaries set by the Supreme Court regarding AGR dues.

Scindia emphasized that the government must act strictly within the judicial framework:

“Judgement needs to be evaluated from a point of view of what can be done and what cannot be done. We cannot cross the border of the SC judgement.”

These comments, though cautious, were interpreted as a sign that the Centre is actively considering options and is prepared to move once the company makes a formal submission.

Also Read: IT Stocks Rally as Rupee Hits Fresh Record Low — Wipro, TCS, Infosys Jump Up to 2%

AGR Relief Under Review: What It Means for the Market

The telecom sector has been closely watching updates on AGR dues, especially for Vodafone Idea, which has struggled with large payouts. While Scindia did not announce any specific relief measures, his acknowledgment that the government is in the evaluation phase was enough to trigger a sharp reaction in the stock.

Investors appear to be betting that some form of structured relief or payment clarity could improve Vodafone Idea’s financial visibility in the near term. Markets generally view such clarity as a catalyst for both telecom players and their dependent partners, such as tower operators.

Citi Says Indus Towers Is a Key Beneficiary

International brokerage Citi released comments stating that Scindia’s interview provides a strong buying opportunity for Indus Towers, given that Vodafone Idea is one of its major clients.

According to Citi:

• Scindia’s remarks act as a sentiment booster for Indus Towers.

• Any clarity or relief that helps Vodafone Idea improve Indus Towers’ visibility on receivables and tenancy growth.

• The brokerage believes investor confidence in Indus Towers is likely to strengthen because a more stable Vodafone Idea reduces business risk.

Citi also highlighted that the minister’s tone indicates the possibility of constructive action from the government once Vodafone Idea submits its formal request.

This interpretation led to Indus Towers gaining nearly 3%, making it one of the notable movers in the telecom ecosystem on December 3.

Why Investors Reacted Strongly?

The back-to-back rally in Vodafone Idea stock reflects a combination of factors that investors typically respond to:

Government acknowledgment of the issue

The minister’s clear public comments provided a sense of direction after months of uncertainty.

Possibility of near-term decisions

Scindia said AGR recommendations may be finalised “in the coming weeks,” suggesting timelines are being actively considered.

Legal clarity is being examined

By stating that the government is reviewing the Supreme Court judgment boundaries, the minister indicated due diligence is underway rather than a blanket rejection of relief.

Broader sector impact

Citi’s call that Indus Towers stands to benefit created a ripple effect across connected telecom infrastructure plays.

Investor Sentiment: Volatile Yet Positive

Despite Vodafone Idea’s deeply volatile trading history, two consecutive sessions of meaningful gains show that the market responds quickly to policy-related triggers. The stock remains sensitive to government commentary, legal updates, and financial relief signals.

Given the minister’s remarks, investors appear to be pricing in the possibility that some clarity will emerge soon—though specifics are still awaited from both Vodafone Idea and the government.

Market watchers, based only on available information, indicate that the next key development will be Vodafone Idea’s formal request to the DoT, which will determine the next steps.

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