Vodafone Idea shares jump 6% as arm raises Rs 3,300 crore via NCDs

Vodafone Idea share price

The shares of Vodafone Idea (Vi) jumped more than 6 percent on December 19 after the company announced that its subsidiary has raised Rs 3,300 crore through the issuance of Non-Convertible Debentures (NCDs). Additionally, CLSA said that the government may consider a partial relief of AGR dues for the telco.

The shares of Vodafone Idea rose to Rs 11.99 apiece, extending gains for the second consecutive session. The stock has risen over 49 percent in 2025 so far.

Vodafone Idea Telecom Infrastructure raises Rs 3,300 crore through NCDs:

Vodafone Idea Telecom Infrastructure Limited (VITIL), a subsidiary of the company, successfully raised Rs 3,300 crore through the issuance of unlisted, unrated, secured Non-Convertible Debentures (NCDs).

The fundraise saw strong interest exceeding the NCD issuance, from a diversified group of marquee investors, including large Non-Banking Financial Companies (NBFCs), Foreign Portfolio Investors (FPIs) and Alternative Investment Funds (AIFs), said the telco.

The proceeds from this issuance will be utilised by VITIL to repay its payment obligations to Vi. This will enable Vi to bolster its capex and support business growth, the telecom firm said in a stock exchange filing.

CLSA on Vodafone Idea:

The government is likely to consider a partial waiver of interest, penalties and interest on penalties that make the majority of the telco's adjusted gross revenue (AGR) dues, CLSA was quoted as saying by Business Standard.

"The government is working on reassessment of Vodafone Idea’s AGR dues and reportedly a relief package will likely be announced by year-end. Vi’s aggregate AGR dues stood at an estimated ~780bn/US$8.7bn in Q2FY26. We believe the government will likely consider waiver of interest (at least in part) and penalties and interest on penalties that make up a bulk of the AGR dues," the newspaper further quoted the brokerage. The relief on the long pending AGR dues could provide Vi will relief of $8 billion, it added.

Vodafone Idea has been struggling with dues, owing about Rs 83,400 crore in adjusted gross revenue (AGR) dues, with annual payments of nearly Rs 18,000 crore scheduled from March 2025.

The debt-laden operator has repeatedly warned 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.

Few weeks ago, the Supreme Court allowed the government to comprehensively reassess and reconcile all dues of the debt-ridden telecom company, including interest and penalties, up to FY17. This was seen as a major relief for the financially stressed operator.

In September, Vodafone Idea had sought a waiver of penalty and interest on an AGR demand worth Rs 9,450 crore raised by the Department of Telecommunications (DoT), arguing that much of it pertained to the pre-FY17 period already settled by the apex court in 2020. Out of this amount, Rs 2,774 crore relates to post-merger liabilities of Vodafone Idea, while Rs 5,675 crore pertains to pre-merger dues of the Vodafone Group.

The government became the largest shareholder in Vodafone Idea in March this year after converting dues worth Rs 36,950 crore into equity, taking its stake to nearly 49 percent. Earlier, in 2023, the Centre had picked up a 33 percent stake in lieu of statutory dues exceeding Rs 16,000 crore.

Vodafone Idea share price history:

After hitting a 52-week low of Rs 6.12 per share in August this year, the stock rapidly nearly doubled to its 52-week high of Rs 12.03 per share on December 15. The shares have gained nearly 12 percent in the past one month.

Vodafone Idea shares gained around 56 percent in the past one year, and over 43 percent in the past three years.

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