The shares of Vodafone Idea jumped 7% to a four-month high level on Wednesday after the telecom company said that its board will meet on May 16 to consider a proposal to raise funds through the issuance of equity shares and warrants on a preferential basis, after the recent AGR relief announced by the government.
In an exchange filing released in the post-market hours of Tuesday, Vodafone Idea said that its board of directors will meet on May 16 to consider and approve its results for the fourth quarter of the financial year 2026. Along with the earnings, the board will also consider and evaluate the proposal for “raising of funds by way of issuance of equity shares and / or warrants on preferential basis, subject to such approvals as may be required, including approval of the shareholders of the company,” it said.
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This comes after the Department of Telecommunications (DoT) earlier this month reduced the telco’s adjusted gross revenue (AGR) dues by 27% to Rs 64,046 crore as of December 31, resulting in bullish calls for the stock. Following a Supreme Court order passed in January, DoT had formed a committee to reassess Vi’s AGR dues and had frozen AGR dues at Rs 87,695 crore as of December 31, 2025.
“In this regard, we now wish to submit that the DoT, vide its communication dated April 30, 2026, has informed that the committee formed for the purpose has finalised the AGR dues at Rs 64,046 crore as on December 31, 2025,” the company said in an exchange filing in February.
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It added that, as per the latest government order, the final amount will be payable in tranches. A minimum of Rs 100 crore will be paid annually over four years from FY32 to FY35. The remaining amount will be paid in six equal installments annually from FY36 to FY41.
Vodafone Idea also recently appointed billionaire industrialist Kumar Mangalam Birla as its non-executive chairman, around five years after he resigned from the same role in the telecom giant amid financial stress.
The latest fundraise will likely boost investor sentiment further for the stock, which earlier saw a sharp decline as the management warned that the company would not be able to survive unless provided with some relief on the debt.
Under the 2021 telecom relief package, the government converted a portion of Vi’s dues into equity, eventually raising its stake to 48.99%, making it the company’s largest shareholder. In February 2023, nearly Rs 16,000 crore of interest on deferred spectrum and AGR dues was converted into equity, giving the government about a 33% stake at the time. This was followed by the conversion of an additional Rs 36,950 crore of spectrum auction dues into equity in April 2025.
Vodafone Idea share price:
Vodafone Idea shares have seen a strong rise recently, jumping nearly 30% in one month and 15% in six months. The stock has rallied around 73% in one year. The shares of the company jumped 7% to trade at a four-month high level of Rs 12.71 apiece today in the morning.
The company currently has a market capitalisation of nearly Rs 1.3 lakh crore.
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