Vodafone Idea stock gains for 2nd day on Scindia's comments about AGR relief; Citi sees Indus Towers as beneficiary

Vodafone Idea, Indus Towers shares

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26 Aug, 2025 12:21

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The shares of Vodafone Idea jumped nearly 5 percent to its day's high on December 3, extending significant gains for the second consecutive session after Union Telecom Minister Jyotiraditya Scindia said that the Centre may finalise the telecom company's AGR relief recommendations in the coming weeks.

International brokerage Citi meanwhile said that Scindia's comments will boost the shares of Indus Towers.

Vodafone Idea shares jumped nearly 5 percent to hit an intraday high of Rs 10.60 apiece, the highest level seen by the stock in nearly two weeks. The stock then pared some gains to close more than 4 percent higher at Rs 10.57 apiece.

Indus Towers shares meanwhile gained more than 1 percent to close at Rs 406.30 apiece.

Here's what Scindia said:

The government is awaiting a formal request from the telecom giant before going forward with any relief measures, Union Telecom Minister Jyotiraditya Scindia said during an interview with CNBC-TV18 on Monday.

"DoT is waiting for a formal request from Vodafone. Govt will make a recommendation after evaluating Vodafone Idea’s proposal," the minister said, adding that the ministry is now examining the legal boundaries set by the court. "Judgement needs to be evaluated from a point of view of what can be done and what cannot be done. We cannot cross the border of the SC judgement," he said.

During his interview with the business news channel, Scindia added that the government may be able to complete its assessment and issue recommendations within a couple of weeks, with the relief package contours likely to be announced by year-end.

"SC judgement is for Vodafone Idea and therefore any govt recommendations are for Vodafone Idea. Any other company which wants similar relief will have to approach the Supreme Court," he added.

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.

What Citi said on Indus Towers:

International brokerage Citi said that the shares of Indus Towers offers compelling buying opportunity, boosted by remarks from telecom minister Jyotiraditya Scindia regarding AGR relief for the company's key client Vodafone Idea.

Scindia's comments instill confidence and alleviate uncertainty surrounding the timing and contours of the govt's relief package for Vodafone Idea, the brokerage said. It kept a 'High-conviction Buy' rating for the shares of Indus Towers, with a target price of Rs 500 apiece. This implies an upside potential of more than 24 percent from the stock's previous closing price.

Cabinet Secretary calls meeting on Vodafone Idea AGR relief, says report:

Cabinet Secretary TV Somanathan has scheduled a meeting on Thursday with senior officials from the Ministry of Finance and DoT to deliberate on Vodafone Idea's AGR relief plan, NDTV Profit reported citing people familiar with the matter.

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