Vodafone Idea’s stock kept climbing for a second day, gaining about 3% and reaching ₹11.95 per share.
Why the stock rose
Investors are encouraged by a big cash injection from the company’s promoters and a new government relief plan that puts a hold on a huge debt called AGR dues.
GST penalty issue
The tax office issued a ₹638 crore penalty to Vodafone Idea for alleged short‑payment of GST. The company says it disagrees with the order and will fight it in court.
Government’s relief package
- The cabinet has frozen Vodafone Idea’s AGR dues of about ₹87,695 crore.
- The frozen amount will start to be payable only from the 2031‑32 fiscal year and must be cleared by 2040‑41.
- The final figure will be set by a government committee after an audit.
Promoter capital infusion
Vodafone Group and its shareholders have agreed to put ₹5,836 crore into the company.
- ₹2,307 crore will be provided as cash over the next 12 months.
- The remaining ₹3,529 crore will come from selling equity shares held by Vodafone Group investors.
- As part of the deal, 328 crore worth of shares have been pledged for five years to cover contingent liabilities.
Analyst outlook
One brokerage kept a “SELL” rating on the stock, saying the company’s debt level is still too high. They argue that more government reforms are needed to make the balance sheet stronger.
Key takeaways
- Shares are up 11% in two days, erasing a recent drop.
- Promoter funding and AGR relief are the main drivers.
- The GST penalty remains a legal hurdle.
- Analysts stay cautious because of high leverage.
Remember, this is just an overview, not a prediction. Do your own research or talk to a financial adviser before making any investment decisions.