Vodafone Idea Shares Jump 7% on Relief Proposal; Should You Buy, Sell or Hold?

Shares of Vodafone Idea (Vi) surged over 7% on August 22, closing at ₹7.02, after reports suggested the Prime Minister’s Office (PMO) is considering relief measures for the debt-laden telecom operator. The stock even touched an intraday high of ₹7.31, rallying nearly 12% before cooling off.

According to reports, the Department of Telecommunications (DoT) has submitted an informal note to the PMO, proposing options such as a two-year moratorium extension on statutory dues, smaller annual payouts, and a waiver on penalties and interest related to adjusted gross revenue (AGR).

Vodafone Idea currently owes about ₹83,400 crore in AGR dues, with annual payments of nearly ₹18,000 crore starting March 2025. Its total government dues stand at around ₹2 trillion, including penalties and interest. The company has repeatedly warned that without funding support, survival will be difficult, as banks remain hesitant to lend.

On its part, Vi is exploring non-bank funding options to continue its capex cycle, while also urging the government to resolve the AGR matter before the March 2026 deadline.

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Market Insights & Update

• Relief measures, if approved, could ease Vi’s financial burden and provide short-term stability.

• However, analysts remain cautious. Motilal Oswal reiterated a ‘Sell’ rating with a target of ₹6, citing subscriber decline and weaker earnings outlook.

• ICICI Securities maintained a ‘Hold’ rating with a target of ₹7, highlighting the importance of funding and AGR resolution for the company’s future.

Key Highlights

Vodafone Idea shares closed 7% higher at ₹7.02
DoT proposes moratorium extension & waiver on penalties
AGR dues: ₹83,400 crore; total dues: ~₹2 trillion
Brokerages divided: Motilal Oswal (Sell), ICICI Sec (Hold)

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