The shares of Vodafone Idea (Vi) jumped nearly 4% on Friday after the telecom major's shareholders approved investment worth Rs 4,730 crore from the Aditya Birla Group, with Chairman Kumar Mangalam Birla highlighting that the company has passed through one of the most challenging periods in its history.
Vodafone Idea shares surged to Rs 14.67 apiece on Friday morning. The shares of the telecom major have rallied around 115% in just one year.
The shareholders of the telecom company approved the Aditya Birla Group’s investment through a preferential allotment of warrants at an extraordinary general meeting (EGM) on Thursday. The conglomerate’s stake in the company will increase to nearly 13% from 9.6% with this transaction.
Vi Chairman Kumar Mangalam Birla addressed shareholders in what was his first EGM after taking the role earlier this year. He said that the company managed to emerge through the tough times through resilience, and now the focus shifts to execution.
"The focus now shifts firmly to execution," Birla said. "Across operations, customer service, and network expansion, the company is pursuing its priorities with discipline and purpose. The benefits of sustained investments in network infrastructure and rollout are now becoming increasingly visible, reflected in stronger operational performance and improved customer experience,” he added.
Speaking about Aditya Birla Group’s investment in Vodafone Idea, KM Birla said this transaction reaffirms the conglomerate’s belief in the long-term prospects of the company and its continued alignment with the interests of all shareholders. The fresh capital will be used for capital expenditure and repayment of loans, the company said.
Also read: AB Group reaffirms bet on Voda Idea with Rs 4,730 Cr infusion
Vodafone Idea’s board in May approved a preferential allotment of convertible warrants to Suryaja Investments, a Singapore-based entity of Aditya Birla Group, marking a fresh capital infusion from the company’s promoters. Upon full conversion, Suryaja Investments will hold up to a 3.82% stake in the telecom company.
Billionaire industrialist Kumar Mangalam Birla returned as Vodafone Idea’s non-executive chairman in May, around five years after he resigned from the same role in the telecom giant amid financial stress.
Also read: Aditya Birla Group to invest $500 million in Vodafone Idea as revival signal strengthens
How Vodafone Idea navigated through one of its toughest challenges
Vi, a joint venture between the Aditya Birla Group and Vodafone Group, was formed to tackle the significant competition unleashed after Reliance Jio entered the market back in 2016. However, India’s third-largest telco by market share soon came under pressure due to rising AGR dues, with management highlighting difficulty in surviving unless some concessions were given.
Under a 2021 telecom relief package, the government converted a portion of Vi’s dues into equity, eventually raising its stake to 48.99%, making it the company’s largest shareholder. In February 2023, nearly Rs 16,000 crore of interest on deferred spectrum and AGR dues was converted into equity, giving the government about a 33% stake at the time. This was followed by the conversion of an additional Rs 36,950 crore of spectrum auction dues into equity in April 2025. In the same year, Birla resigned.
The government in December 2025 approved a partial moratorium on Vi’s dues, freezing them at Rs 87,695 crore and deferring repayments to the 2030s, which provided near-term cash flow relief for the debt-ridden firm.
Earlier in May, Vodafone Idea announced that the Department of Telecommunications (DoT) reduced the telco’s adjusted gross revenue (AGR) dues by 27% to Rs 64,046 crore as of December 31. It added that DoT formed a committee to reassess its AGR dues as per the order passed by the Supreme Court earlier. DoT in January this year had frozen AGR dues at Rs 87,695 crore as of December 31, 2025.
It added that, as per the latest government order, the final amount will be payable in tranches. A minimum of Rs 100 crore will be paid annually over four years from FY32 to FY35. The remaining amount will be paid in six equal instalments annually from FY36 to FY41.
What lies ahead for Vodafone Idea share price?
Citi has recently removed its 'High Risk' rating on the stock and raised its target price to Rs 17, implying an upside potential of about 20% from the previous closing price. In its note, Citi Research changed its rating on Vodafone Idea shares to ‘Buy’ from ‘Buy-High Risk’, citing several tailwinds, including the government’s recent reassessment of AGR dues, rating upgrades, equity infusion by the Aditya Birla Group, and other factors.
“The company's balance sheet leverage has been uncomfortably high and worsened following the adverse Supreme Court verdict on the AGR issue in October 2019. However, government moves since then, including a moratorium on spectrum and AGR payments, partial conversion of spectrum dues to equity, and reassessment of AGR dues, have together provided material balance sheet and cash flow relief. Planned equity infusion by the AB Group is an additional positive, which should enable the company to complete its long-pending bank fund raise, thereby resuming network investments,” it said.
Also read: Citi removes ‘High Risk’ rating on Vodafone Idea share price; here’s why
Ratings agency ICRA upgraded Vodafone Idea’s rating to A- from its earlier BBB rating and revised its outlook on the company’s long-term fund-based loans worth Rs 727 crore to ‘Stable’ from ‘Positive’.
Vodafone Idea share price
Vodafone Idea shares have fallen nearly 3% in one week but gained 22% in one month and 26% in 2026 so far. In the longer term, the shares of the company jumped 115% in one year, 94% in three years and 48% in five years.
The company currently has a market capitalisation of more than Rs 1.58 lakh crore. The stock’s P/E ratio stands at a little over 4x.
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