Vodafone Idea shares rise 3% as promoter KM Birla's additional stake purchase boosts sentiment

Kumar Mangalam Birla raises stake in Vi

• Vodafone Idea shares rose over 3 percent after Birla's stake acquisition
• Birla bought 5.96 crore shares worth Rs 68.42 crore in early February
• Emkay Global upgraded Vodafone Idea, citing government relief on AGR dues

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The shares of Vodafone Idea gained more than 3 percent on February 11 as promoter Kumar Mangalam Birla’s recent stake acquisition from the open market boosted investor sentiment.

The shares of the company rose to a one-month high of Rs 11.86 apiece on Wednesday. The shares of the telecom major have rallied around 79 percent in six months.

Kumar Managalam Birla buys additional stake in Vodafone Idea:

Kumar Mangalam Birla bought 2.21 crore shares on January 30, 1.88 crore shares on February 1 and 45 lakh shares on February 2, according to market data cited by CNBC-TV18. The industrialist bought another 1.42 crore shares on February 3, according to market data.

At the previous closing price of Rs 11.48 apiece, the total 5.96 crore shares bought by the industrialist over the two days would be worth around Rs 68.42 crore.

According to the company’s shareholding pattern as on December 31, 2025, Kumar Mangalam Birla owned 0.02 percent stake in the company. Promoter and promoter groups collectively owned 25.57 percent stake in the telco, while the rest of the 74.43 percent stake was held by the general public.

Emkay Global on Vodafone Idea:

Emkay Global upgraded the shares of Vodafone Idea to ‘Add’ from ‘Sell’, and doubled its target price to Rs 12 apiece from Rs 6 apiece earlier. The latest target price implies an upside potential of nearly 4.5 percent from the stock’s previous closing price.

The domestic brokerage noted that the government has approved a major moratorium for VI’s AGR liabilities, with minimal annual payments until FY35.

“We believe this will provide significant cash flow relief and a turnaround opportunity. The relief reduces the net present value (NPV) of the burden by 60–80%, easing immediate survival pressure, along with the possibility of further reduction on reassessment of AGR dues. This will enable VI to access bank funding for 4G/5G expansion, helping the company arrest subscriber churn and market-share loss,” it said.

However, Emkay noted that the key risks to its bullish call include inability to increase subscriber market share, significantly increase ARPU with tariff repair and upgrade the subscriber base from 2G to 4G/5G.

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