Vodafone Idea stock soars: Should investors buy, sell, or hold?

Great news for telecom company Vodafone-Idea. The government has decided to convert 36,950 crores of spectrum liabilities into equity. This is reflected in the shares.

After this decision, the government's stake in the company will increase to approximately 49%. Vodafone-Idea PLC will hold 16.10% and Aditya Birla Group 9.4%.

On Friday, March 28, 2025, Vodafone-Idea's share closed at ₹6.8. On Tuesday, April 1st, it hit a 10% upper circuit as soon as the market opened. By 10:30 AM, the share is at ₹7.48.

Global brokerage firm CLSA has upgraded Vodafone-Idea's share rating from Reduce to Accumulate. Its target price has been increased to ₹10.

Brokerage firm CITI has also given a Buy rating on Vodafone-Idea shares with a target price of ₹12. The brokerage says this is very positive for Vodafone.

After receiving relief from the government, Vodafone-Idea's capital structure will improve by ₹63,000 crores in FY25.

If the government decides to convert Vodafone-Idea's entire debt into equity, its stake in the company could reach 75-80%. This could provide significant relief to the company.

Be sure to consult your market expert before making any investment decisions.