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Business
Vodafone Idea stock soars: Should investors buy, sell, or hold?
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Major Relief for Vodafone-Idea
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.
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Shareholding in Vodafone-Idea
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%.
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Vodafone Idea Share Price
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.
Vodafone Idea Share Price Target-1
Global brokerage firm CLSA has upgraded Vodafone-Idea's share rating from Reduce to Accumulate. Its target price has been increased to ₹10.
Vodafone Idea Share Price Target-2
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.
State of Vodafone-Idea Company
After receiving relief from the government, Vodafone-Idea's capital structure will improve by ₹63,000 crores in FY25.
If the Government Converts the Entire Debt into Equity
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.
Note
Be sure to consult your market expert before making any investment decisions.