Citi upgraded Vodafone Idea to "buy" with a target price of Rs 13 per share, citing a significant bank guarantee waiver for spectrum payments. This relief eases financial pressure, improving funding prospects.

In a BSE filing, Vodafone Idea stated that this reform significantly eases its financial burden and removes a major obstacle in raising much-needed debt funding. The waiver comes as a timely relief for the cash-strapped telecom operator, which has been struggling to stabilize operations amid mounting debt.

Citi said that any progress on Vodafone Idea's debt funding will be a key monitorable going forward and an added trigger for both Vodafone Idea and Indus Towers.

Vodafone Idea shares rose over 7% after the government waived the need for bank guarantees. This move will help the telco raise further funds and also benefit its vendor Indus Towers. The waiver, which applies to past spectrum auctions,

Vodafone Idea shares rose over 6% on December 30, 2024, after the government waived Rs 24,800 crore in bank guarantees for past spectrum auctions, easing the telecom firm’s financial burden.

Prior to this announcement, Vodafone Idea was supposed to submit bank guarantees worth nearly ₹24,800 crore against each spectrum instalment, 13 months prior to the instalment due for the above auctions.

Vodafone Idea stock has underperformed the market in the last six months as it has fallen 57 per cent, while slipping 52 per cent in the last one year. In comparison BSE Sensex has fallen 0.56 per cent in the last six months and 8.8 per cent in a year.

The shares of Vodafone Idea experienced a jump in Mondays intraday trading, surging by 7% to reach Rs 8 apiece on the BSE. The uptick followed the announcement that the Department of Telecommunications (DoT) had waived the requirement for financial bank guarantees (FBGs) for spectrum acquired in auctions held in 2012,

Shares of Vodafone Idea Ltd (VIL) will be in the spotlight in Monday's trading session following two huge developments. The telecom operator has received a letter from the Department of Telecommunications (DoT) regarding a waiver on bank guarantees.

Vodafone Idea rose 8 per cent to hit a high of Rs 8 on BSE. That said, it soon cut gains and was trading 2.81 per cent higher at Rs 7.68, as investors have already baked in the news in the price.