By Soni 
Vodafone Idea has recently shown a strong rise in the Indian stock market. This surge in the company’s shares has attracted the attention of investors. If you are also questioning the future of this telecom company and its current situation, then this article is for you.
Recent performance of Vodafone Idea stock
Vodafone Idea stock saw a 19% rise and reached an intraday high of ₹ 8.28. But if we evaluate the last six months, the stock has fallen by 48%. In the last one year, this decline has been up to 40%.
Reason for rise: Government Relief
The biggest reason for this increase in Vodafone Idea shares is believed to be the relief given by the government. The government has abolished the bank guarantee requirement for spectrum purchased before 2022.
Effect of removal of bank guarantee
Companies have got financial comfort.
Now companies can use their resources in network expansion and subscriber retention.
This is also a positive step for banks, as now they will not have to take risk for the financial commitments of the companies.
Financial position of the company
Vodafone Idea still has to pay AGR dues of more than ₹ 70,000 crore to the government. This is putting a lot of pressure on the company’s balance sheet.
Fundraising Efforts
The company has raised ₹22,400 crore so far.
This also includes a fresh issue of ₹8,000 crore.
The funds raised are being used for network and capacity expansion.
Focus on Network Expansion and Subscriber Retention
The company has claimed to install 100 towers every hour. During FY25 (April 2024 to March 2025), the company plans to invest ₹10,000 crore in strengthening and expanding its network.
Efforts to stop Subscriber Loss
The company lost 1.4 crore subscribers in the last quarter.
The company is now accelerating its 4G rollout and is preparing to launch 5G services soon.
With these steps, the company is hoping to retain its existing customers and attract new customers.
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What is the advice for investors?
If you are a Vodafone Idea shareholder or planning to invest in it, keep the following in mind:
Strict Stop-Loss: Set at ₹ 6.
Target Price: The target of the stock can be ₹ 11.5 to ₹ 12 in the coming time.
Take a long-term view: The company’s recent steps indicate that it is trying to stabilize its operations and move towards growth.
Will Vodafone Idea become a Multibagger?
Investors are excited about Vodafone Idea’s recent performance and government relief. However, the company still has to deal with major financial pressures. If the company is able to complete its network expansion and 5G launch on time, then its stock can see a big jump.
Conclusion
The recent rise in Vodafone Idea’s stock has forced investors to think afresh. The government’s relief and the company’s expansion plans have raised hopes that this stock can give better returns in the coming times. However, before investing, do market research and assess financial conditions.