Vodafone Idea shares surge 6% on government relief speculation 

BL Mumbai Bureau Updated - June 24, 2025 at 04:00 PM.

The stock gained momentum after Jyotiraditya Scindia emphasized the importance of competition in India’s telecom sector

Vodafone Idea shares jumped over 6 per cent in morning trade on June 24, touching ₹7.03 before settling at ₹6.96, following reports that the central government is considering significant relief on the telecom operator’s regulatory dues worth ₹84,000 crore.

The stock gained momentum after Telecom Minister Jyotiraditya Scindia emphasized the importance of competition in India’s telecom sector, stating that the country “can’t afford a duopoly” and must maintain competitive markets across all sectors. Speaking at a Delhi event, Scindia noted that India is “probably the only country in the world for competition in ISP domain.”

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According to an Economic Times report citing sources familiar with the matter, the government is exploring multiple options to provide relief on Vodafone Idea’s outstanding regulatory dues amid concerns over the company’s potential bankruptcy. The central government holds the largest equity stake in the telecom operator.

The relief consideration comes after Vodafone Idea reportedly warned the government that it cannot sustain operations beyond FY26 without support and may be forced into insolvency proceedings. The company’s financial distress has raised concerns about market concentration in India’s telecom sector.

Trading data showed the stock opened at ₹6.71 against the previous close of ₹6.55, with a day’s high of ₹7.03. The company’s total market capitalization stood at ₹74,973 crore, while the free float market cap was ₹19,080 crore.

Published on June 24, 2025 08:28

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