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.

India's private telecom operator Vodafone India Ltd. can reverse 2024 losses if the 74% upside forecast by Citi Research comes into play after it received the much-needed bank guarantee waiver. Shares of the least profitable private telecom player plunged about 65% from its peak in July after India's top court rejected a plea seeking re-computation of average gross revenue by the Department of Telecommunication.

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.

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,

Citi is bullish on Vodafone Idea after the Department of Telecommunications (DoT) waived the bank guarantee requirement for the cash-strapped telecom operator. Citi also maintains its 90-day positive catalyst watch on Indus Towers.