The shares of Vodafone Idea rallied 10 percent amid a surge in trading volumes. The shares of the telecom giant were locked at the upper circuit at Rs 7.27 apiece, extending gains for the third consecutive session.
More than 83 crore shares of the company worth Rs 572 crore have been engaged in trade today, according to data on NSE at 1.50 pm. This is higher than the stock's 10-day average volume.
Vodafone Idea shares have gained nearly 11 percent in the past five days, and over 5 percent in the past one month. The stock however has declined 7.5 percent in the past six months, and more than 9 percent in 2025 so far.
Earlier yesterday, the Economic Times reported citing people familiar with the matter that the central government is looking for a strategic investor who is willing to commit $1 billion (over Rs 8,800 crore) into debt-ridden Vodafone Idea for a 12-13 percent stake.
Promoters Aditya Birla Group (ABG) and UK's Vodafone will have the option to dilute some of their stake as the government wishes to remain invested in the telecom giant for some more time, the report added citing sources. The government wishes that the new investor takes Vodafone Idea forward with new ideas as well, it further said.
This is one of the many ways, including AGR relief, that the government is exploring in order to save one of the largest telecom companies in India from shutting down, the report said. The government has identified some potential suitors, and talks are likely to pick up pace in the near future, the report further said.
Moneycontrol couldn't independently verify the report.
Vodafone Idea has been struggling with debt, owing nearly Rs 83,400 crore in adjusted gross revenue (AGR) dues, with annual payments of around Rs 18,000 crore scheduled from March 2025.
The debt-laden operator has repeatedly warned that it cannot survive without funding support, as banks remain wary of lending, given its financial stress. Vi employs over 18,000 people and has nearly 198 million subscribers.
The telecom service provider is exploring non-bank avenues to fund its capital expenditure plans, as negotiations with lenders remain stalled due to uncertainty over adjusted gross revenue (AGR) dues, outgoing CEO Akshaya Moondra said on August 18 during the June quarter earnings call.
Vi has also formally urged the government to settle the AGR matter ahead of the March 2026 deadline, which Moondra said would help reassure banks and unlock financing support.
"Given the fact that we are keen on maintaining a continuity of our capex, which has been going on since last year, we are looking at non-banking sources of funding, also not the full amount of Rs 25,000 crore that we have talked about, but a lesser amount so that we can continue with the capex cycle," Moondra said.
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