May 16, 2025 - Shares of Vodafone Idea Ltd (NSE: IDEA) closed at ₹7.35, marking a 1.66% increase (+₹0.12) on Friday, reflecting renewed investor interest in the telecom giant. The stock opened at ₹7.32, reached a high of ₹7.55, and dipped to a low of ₹7.22 during the trading session, with a market capitalization of ₹79.63K crore.
The uptick follows recent positive developments for the debt-laden telecom operator. On May 14, MSCI announced an increase in Vodafone Idea’s weightage on the MSCI Global Standard Index, potentially attracting inflows of up to $16 million by the end of May. This rebalancing is expected to bolster the stock’s visibility among global investors. Additionally, the stock surged 4.15% on Thursday, hitting a high of ₹7.27, driven by optimism around its financial restructuring efforts.
Despite its challenges, including a hefty ₹2.3 lakh crore debt as of December 2024, Vodafone Idea has benefited from government support. The government’s conversion of ₹36,950 crore in spectrum dues into equity in March 2025 raised its stake to 48.99%, providing significant cash flow relief. Analysts at Citi maintain a ‘buy’ rating with a ₹12 target price, citing reduced spectrum dues over the next three years. However, some analysts remain cautious, with MOFSL suggesting a ‘sell’ at a ₹6.50 target, warning that further equity conversions could transform Vodafone Idea into a public sector undertaking (PSU).
The company’s subscriber base remained stable at 126.4 million as of March 2025, and its network outage issues in April were resolved swiftly, restoring confidence among users. With mutual funds increasing their stake to 4.50% in the March quarter and 59.06 lakh retail shareholders backing the stock, market sentiment appears mixed but hopeful.
Market Snapshot:
- 52-Week Range: ₹6.47 - ₹19.18
- P/E Ratio: Not applicable due to ongoing losses
- Dividend Yield: None
As Vodafone Idea navigates its financial challenges and searches for a new CEO to replace Akshaya Moondra, whose term ends in August 2025, the stock remains a high-risk, high-reward play for investors. Posts on X reflect divided sentiment, with some warning of persistent losses and others speculating on short-term gains.
Disclaimer: Stock market investments carry risks. Consult a financial advisor before making investment decisions.
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