Now Reading: Vodafone Idea shares jump 8% on SBI loan progress
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Vodafone Idea shares jump 8% on SBI loan progress
Shares of Vodafone Idea closed at Rs 15.19 on Tuesday, up 7.96 per cent, after touching an intraday high of Rs 15.31. Over 153 crore shares changed hands with a traded value…
Shares of Vodafone Idea closed at Rs 15.19 on Tuesday, up 7.96 per cent, after touching an intraday high of Rs 15.31. Over 153 crore shares changed hands with a traded value of Rs 2,286 crore. The rally was driven by reports that State Bank of India has agreed to sanction its portion of a proposed loan after promoter companies provided guarantees.
The telco is seeking Rs 35,000 crore in debt financing as part of a broader Rs 45,000 crore, three-year capital expenditure plan. SBI is not expected to disburse funds until Vodafone Idea secures the remaining portion from private-sector and foreign lenders. Expectations of an industry-wide tariff hike also supported sentiment, with analysts seeing a broader increase around December 2026.
The company reported its first quarter of net subscriber additions since its merger, with its base rising to 193.1 million. Average revenue per user climbed to Rs 195 from Rs 177. The stock has gained nearly 31 per cent year-to-date and over 105 per cent in the past 12 months.
Indian Opinion Analysis
Vodafone Idea's financial health remains tied to its ability to close the full Rs 45,000 crore capital plan, which is critical for rolling out 4G and 5G networks to retain subscribers against Airtel and Jio. The company carries over Rs 2 lakh crore in debt and statutory dues, including spectrum payments to the government. The promoter guarantee to SBI resolves one hurdle, but private-sector and foreign lenders typically demand stronger cash-flow visibility before committing. The next milestone is the December 2026 tariff increase that analysts expect, which could provide the revenue boost needed to service new loans. The Telecom Regulatory Authority of India will monitor whether any tariff move triggers consumer complaints or a regulatory review.
Source: thehindubusinessline.com
This brief was synthesised by AI from the source linked above.
