Vodafone Idea Stock Price up by More Than 1% as Company Looks to Raise $2.9 Billion Loan

Thursday, June 26: Vodafone Idea shares continued their upward momentum, marking the third consecutive day of gains. As of 11:00 AM, the stock climbed as much as 2.38% to ₹7.30 apiece on the BSE, pushing its total rally to nearly 15% over the past five days.

Fundraising Plans Drive Investor Optimism

The recent surge in Vodafone Idea’s share price is largely attributed to reports indicating the company is in advanced discussions to secure ₹25,000 crore (approximately $2.9 billion) in loans from a consortium of banks. According to a Bloomberg report, this substantial debt package is expected to be a mix of domestic and foreign loans with a proposed tenure of around 10 years. The State Bank of India (SBI) is anticipated to lead this consortium, with global banks also expected to participate.

These funds are crucial for Vodafone Idea, as they are intended to significantly strengthen its network infrastructure, including the expansion of its 4G coverage and the rollout of 5G services. This capital infusion is vital for the company to enhance its competitiveness against its larger rivals in the Indian telecom market, primarily Reliance Jio and Bharti Airtel. The loan initiative follows the company’s board approval in May to raise ₹20,000 crore through equity or debt instruments, with a total capital expenditure program of ₹50,000-55,000 crore planned over the next three years.

Performance Snapshot

Despite the recent rally, Vodafone Idea’s longer-term stock performance remains under pressure:

• 1-month gain: 5%
• 3-month gain: 3%
• Year-to-date decline: 9%
• 1-year decline: 60%
• 5-year loss: Nearly 30%

In its Q4 FY25 (January-March 2025) results, Vodafone Idea reported a consolidated net loss of ₹7,166 crore, narrowing from ₹7,674.6 crore in the year-ago period but widening from ₹6,609.3 crore in the preceding quarter. Revenue from operations for Q4 FY25 rose 3.8% year-on-year to ₹11,013.5 crore.

The company’s Average Revenue Per User (ARPU) showed a positive trend, increasing to ₹175 in Q4 FY25 from ₹153 in Q4 FY24, driven by tariff hikes and customer upgrades. However, the company continues to struggle with significant adjusted gross revenue (AGR) and spectrum dues to the government, amounting to approximately ₹1.95 trillion as of March 31, 2025, with large annual instalments due from March 2026.

Government Stake and Strategic Moves

Earlier in April, the Indian government increased its stake in Vodafone Idea to 48.99% by converting a portion of the company’s spectrum payment liabilities into equity. This move was widely interpreted as a critical step by the government to stabilise the financially stressed telecom operator and enhance investor confidence, as it signals a commitment to maintaining a competitive three-player telecom market in India. While the government is now the largest single shareholder, operational control remains with the promoter groups, namely the Vodafone Group and the Aditya Birla Group.

What’s Ahead For Vodafone Idea? 

Vodafone Idea’s near-term performance will be based on the successful closure of its ₹25,000 crore loan deal and the timely execution of its ₹ 50,000 crore+ capital expenditure plan. Investors will closely monitor 5G rollout updates, ARPU improvements, and any fresh equity infusion. Regulatory clarity and government support will also be crucial in sustaining the momentum of the turnaround.

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