VI shares surge 22% in a month: What's the reason?
What's the story
Vodafone Idea (Vi) shares have witnessed a remarkable rally, surging over 22% in the last month. The stock rose from ₹9.99 to a 52-week high of ₹12.20 today. The surge is largely due to investor optimism about a possible relief package for the company's long-standing adjusted gross revenue (AGR) dues, which has been a major concern for the telecom operator over the years.
Relief measures
Potential relief package for Vodafone Idea
The AGR issue isn't new, but recent developments have revived hopes of a resolution. The government is said to be considering an interest-free moratorium of four to five years on over ₹83,000 crore of statutory dues owed by Vi. A reassessment could even reduce the payable amount by half, with a secretary-led committee likely to review the final settlement.
Financial impact
Package could boost Vodafone Idea's financial position
If approved by the Union Cabinet, this proposal could be a major boost for the telco. It would help Vi secure its planned ₹25,000 crore capital infusion and strengthen its financial position. The relief comes at a time when Vi is under pressure to meet a March deadline for repaying over ₹18,000 crore, part of an earlier AGR moratorium granted in 2021.
Market reaction
Market response and technical analysis of shares
Amid this regulatory support and renewed investor interest, market participants are closely watching the stock's performance. Amruta Shinde, Research Analyst at Choice Broking, says Vodafone Idea is showing early signs of a bullish reversal.