The surge in Vodafone Idea's shares is attributed to the upcoming AGR hearing in the Supreme Court on September 26, Citi's ‘high-risk-buy’ rating, indications of government support, potential tariff hikes, and the possibility of bank funding. Investors are closely watching the September 26 hearing, which could determine the company's financial future and stock direction.
Vodafone Idea shares opened at ₹8.63 on Thursday, September 25, and rose by 2% to nearly ₹9. This surge is driven by expectations from the Supreme Court hearing in the AGR case, Citi's positive report, government support, tariff increases, and bank funding. Investors are focusing on the outcome of the September 26 hearing, which could impact the company's future.
Supreme Court Hearing
Vodafone Idea has challenged the Department of Telecommunications (DoT)'s additional AGR demand of ₹9,450 crore in the Supreme Court. The hearing for this case is scheduled for September 26. Investors hope that the court will grant relief to the company. This would alleviate the company's financial pressure and increase stability in the future. The outcome of the AGR case could directly determine the stock's direction.
Citi's Positive Report
Global brokerage house Citi has maintained its ‘high-risk-buy’ rating on Vodafone Idea shares. Citi has set a target price of ₹10 for the stock, which is approximately 12 percent above its current level. The brokerage believes that if the company receives relief in the AGR case, it will directly impact its cash flow and balance sheet. This report has boosted investor enthusiasm.
Indications of Government Support
A positive stance towards Vodafone Idea has also been observed from the government. According to reports, the government is sensitive to the company's situation. There is a possibility of a sympathetic approach regarding funding and relief. This move has boosted investor confidence and become another reason for the surge in the stock.
Tariff Hike and Subscriber Growth
Experts believe that Vodafone Idea may increase its tariffs in the coming time. Furthermore, if the company shows improvement in its subscriber base, its revenue could increase. Both tariff hikes and subscriber growth can create financial strength for the company and opportunities for investors.
Possibility of Banking Funding
After receiving AGR clearance, Vodafone Idea is likely to secure new funding from banks. The company is already in talks in this regard. This will accelerate work on plans such as network expansion and 5G rollout. Obtaining funding will reduce the company's financial pressures and boost its growth trajectory.
Investors' Eyes on the Court
Overall, there are five main reasons for the surge in Vodafone Idea shares: potential relief in the AGR case, Citi's positive report, indications of government support, tariff hikes, and potential banking funding. All these factors have boosted investor confidence. Now, all eyes are on the Supreme Court hearing scheduled for September 26.
Experts believe that the court's decision will determine the company's future direction. If the company receives relief in the AGR matter, its positive impact will be directly visible on the stock. Meanwhile, other investors and market analysts may also plan their next steps after the court's decision.
