Vodafone Idea’s stock has seen significant fluctuations recently. On September 19, 2024, the share price dropped by 15.5% to ₹10.90, falling below its Follow-On Public Offering (FPO) price of ₹11. This decline followed the Supreme Court’s ruling, which dismissed requests from telecom companies to reassess their Adjusted Gross Revenue (AGR) dues. As a result, Vodafone Idea still faces a substantial AGR liability of ₹70,300 crore.
In an effort to improve its network capabilities, Vodafone Idea entered into a ₹30,000 crore (approximately $3.6 billion) agreement with global telecom giants Nokia, Samsung, and Ericsson. The deal is designed to support the rollout of advanced 4G and 5G technologies, offering greater flexibility and modularity. Following the announcement, the stock surged, reaching the 10% upper circuit during early trading on September 23, 2024.
Despite these positive developments, analysts remain cautious about the company’s future. Out of 22 analysts tracking the stock, 14 have issued “sell” ratings, while only four each recommend “buy” or “hold.” JPMorgan recently upgraded the stock to “neutral,” setting a price target of ₹10, which is still below the FPO price of ₹11. The lack of AGR relief and the need for consistent tariff adjustments in the telecom industry were cited as key factors in the analysis.
Currently, Vodafone Idea shares are trading at ₹13.22, reflecting the ongoing market volatility as investors respond to the company’s strategic initiatives and financial challenges.
