Not long ago, Vodafone Idea’s (Vi) shares were languishing at record lows as brokerages flagged concerns that the telecom major’s capital-raising efforts, despite the government stepping in to convert near-term dues into equity, were unlikely to provide enough financial firepower to stem market share losses.

Defying those odds, the cash-strapped telco, a joint venture between the U.K.-based Vodafone Group and the Aditya Birla Group, has staged a sharp turnaround, with its stock price doubling from a 52-week low of ₹6.12 on August 14, 2025, to a 52-week high of ₹12.21 on December 24.

Extending its gaining streak for the second consecutive session, Vi shares rose as much as 1.66% to hit a new 12-month high of ₹12.21 on the BSE today, driven by strong volumes. The market capitalisation climbed to ₹1.31 lakh crore as 2.36 crore shares changed hands over the counter in the first two hours of trading.

In the previous session, the telecom stock ended 1.26% higher at ₹12.01 apiece. The counter has added 21.5% in a month, 77% in six months, and 51.5% in calendar year 2025.

Technically, the stock is trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained buying interest and technical strength, according to MarketsMojo, a share market research platform.

What’s driving Vi shares

The recent rally has been supported by growing optimism around a potential relief package for the company’s long-pending adjusted gross revenue (AGR) dues. The government is reportedly considering an interest-free moratorium of four to five years on more than ₹83,000 crore of Vodafone Idea’s statutory liabilities.

In a key development, the Supreme Court, in its October 2025 ruling, allowed the government to re-evaluate and reconcile AGR dues up to FY2016–17. This move could provide significant relief to Vi by potentially reducing its overall AGR burden, which exceeds ₹2 lakh crore. Notably, the Indian government is Vi’s single largest shareholder, having raised its stake from 22% to 48.99% in April this year by converting spectrum payment dues into equity.

Adding to investor confidence, Vodafone Idea last week announced a fundraise of ₹3,300 crore through the issuance of non-convertible debentures (NCDs) by its subsidiary, Vodafone Idea Telecom Infrastructure Limited (VITIL). The issue garnered strong interest from a diverse set of investors, including large non-banking financial companies, foreign portfolio investors, and alternative investment funds, according to an exchange filing.

The proceeds from the NCD issuance will be used by VITIL to meet its payment obligations to Vodafone Idea, helping ease near-term financial pressures. This would also enable Vi to bolster its capex and support business growth.

“This fresh fundraise reinforces investor confidence in our strategy and long-term vision. The capital strengthens our momentum as we continue to scale our network and enhance services for our customers. Discussions relating to long-term debt raises to support capex are ongoing with banks,” said Abhijit Kishore, CEO, Vodafone Idea.

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