The rally came amid renewed investor optimism after a media report on Tuesday suggested that the Central government was considering a relief package for the debt-laden telecom company, particularly on its regulatory dues.
However, Vodafone Idea issued a clarification denying any such development. “We have not received any communication from the government in relation to the above reported matter. As and when there is any development which requires disclosure, we will do the needful,” the company said in a stock exchange filing on Tuesday.
Adding to the positive sentiment, Union Telecom Minister Jyotiraditya Scindia, speaking at an event in Delhi, emphasised the need for competition in the telecom sector.
“It’s not good enough having a duopoly or one carrier or two carriers. India must have competition in every sector. India today is probably the only country in the world with such robust competition in the ISP domain,” Scindia said.
The telecom sector is currently dominated by Bharti Airtel and Reliance Jio, both of which offer nationwide 4G and 5G services.
Vodafone Idea, which has repeatedly raised concerns about its financial viability, recently said in a petition before the Supreme Court that its survival remains uncertain without further government support. The SC has previously dismissed multiple pleas from telecom companies seeking waivers on their adjusted gross revenue (AGR) dues.
The company had earlier warned that it may not be able to continue operations beyond FY2025-26 without fresh relief. Following a recent equity conversion, the Indian government now holds a 49% stake in Vodafone Idea.
As of Wednesday afternoon, Vodafone Idea shares were trading 4.66% higher at ₹7.19 on the NSE.
