Vodafone Idea Share Price: The shares of Vodafone Idea Ltd surged more than 25% in the last 5 trading sessions and nearly 33% in the last one month. According to reports, the government is working on reducing the AGR dues of telecom sector companies including Bharti Airtel, VIL and Bharti Hexacom. Domestic brokerage firm IIFL Securities expect that there will be a huge upside in the shares of VIL.
Currently the shares of Vodafone Idea slipped 4.33% and are trading at Rs 9.51. IIFL Securities expects a Rs 7 upside per share from the current price level. Check more details below.
What’s the Story?
IIFL Securities recently said that the Indian government is planning to relieve the AGR dues of telecom sector companies. If that happens then liabilities Vodafone Idea Ltd will reduce to Rs 52,000 crore. According to multiple reports, this Waiver of AGR dues will be announced on the coming Union Budget 2025 on February 1, 2025.
This AGR Waiver Will Help VIL’s Rs 25,000 crore debt raise as well as to complete its Rs 50,000 – Rs 55,000 crore capex program through FY27. If this happens then VIL will revive in future with the help of relief.
Vodafone Idea AGR Waiver Details
If the Government relieves AGR dues of the company then Vodafone Idea shares may see a short term upside. There’s a chance the government may convert a part of AGR dues into equity. According to its March fair value 2026 Vodafone Idea shares might come at a price of Rs 10 per share post potential AGR relief. If AGR Waiver is reduced to 50% on interest and 100% on penalties then it could lower to Rs 33,200 crore and Rs 44,500 crore respectively.
IIFL examines a scenario in which VIL completes its debt-raise by the end of FY25 and implements its planned capital expenditure program. The domestic brokerage projects that VIL will have a cumulative cash deficit of Rs 7500 crore and Rs 40,600 crore by the end of FY26 and FY27.
If there’s a modest growth in subscriber addition of VIL and optimistic average revenue per user (ARPU) increases. This means that VIL will need to either raise Rs 40,600 crore in new debt or equity by FY27, or convert government dues into equity. In accordance with the guidelines of the current relief package, the government can choose to convert Rs 12,000 crore or Rs 17,000 crore of VIL’s debts into equity,” IIFL stated.
Future Outlook
There’s a chance that Vodafone Idea could increase its tariffs in FY25. A hike in tariffs will lead to revenue growth which will definitely strengthen VIL’s Financial health. IIFL expects a 15% tariff hike in 2025.
Vodafone Idea Share Price NSE
The shares of Vodafone Idea are currently trading at Rs 9.36, down by 5.84% as of January 21, 2025. Talking about the share performance, VIL Share has gained as much as 25.30% in the last one month. Vodafone Idea shares have delivered 16.85% Returns YTD in 2025. However, it has given negative returns of 35% in the last one year.
VIL Target Price
Vodafone Idea share price target can be maximum Rs 16 by the end of 2025. This represents nearly 60% upside from the current price level of Rs 9.36
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