Wed Nov 27 13:57:40 UTC 2024: ## Vodafone Idea Shares Surge on Government Waiver Speculation

**MUMBAI, INDIA** – Shares of Vodafone Idea Ltd (VIL) experienced a dramatic surge on Tuesday, jumping 7.88% to close at Rs 7.53 after an intraday high of Rs 8.28. Trading volume was exceptionally high, with 18.72 crore shares changing hands, significantly exceeding the two-week average. The increased activity follows reports that the Union Cabinet approved a waiver of bank guarantees for telecom spectrum purchases made up to 2022.

While the company has yet to receive official confirmation from the Department of Telecommunications (DoT), the news sparked investor optimism. In a statement, VIL said it will make necessary disclosures once an official announcement is made.

Despite posting a narrower net loss of Rs 7,175.9 crore in the September 2024 quarter compared to Rs 8,737.9 crore in the same period last year, the company’s Q2 FY25 results showed a sequential increase in losses. Revenue, however, saw a slight rise to Rs 10,932.2 crore. The company maintains a subscriber base of 20.5 crore, with 12.59 crore 4G subscribers and an ARPU of Rs 166.

Analyst opinions are divided. Dharmesh Kant of Cholamandalam Securities views VIL as a potential multibagger for long-term investors, citing the government’s significant stake. However, other analysts, such as Jigar S Patel of Anand Rathi and Osho Krishan of Angel One, advise caution, suggesting investors wait for a more sustained price recovery above Rs 9-9.50 before considering trades. Patel predicts a short-term trading range between Rs 6.5 and Rs 11, while Krishan recommends remaining on the sidelines.

The company recently raised Rs 18,000 crore through a follow-on offering (FPO) and is currently expanding its 5G services. The stock’s future performance remains closely tied to government decisions and the ongoing rollout of 5G.

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