Idea Share Price Rallies After PMO Relief Buzz—Is This the Right Time to Buy, Sell, or Hold?
Sometimes a piece of news changes the entire atmosphere in the stock market. Today something similar happened with Vodafone Idea when the Idea share price shot up by 9% at once. This jump happened because reports said that the Prime Minister’s Office (PMO) can soon take a decision on the relief package for the company. This is big news for investors, but the question is whether to buy now, sell, or hold? Let’s understand in detail.
Idea Share Price Soars After PMO Relief Proposal
On August 22, Vodafone Idea shares rallied 9%, and in afternoon trading, the Idea share price touched Rs 7.13 per share. The momentum came after reports suggested that the PMO had received an informal note from the Department of Telecommunication (DoT). The note proposes several relief options for the company.
More importantly, the DoT has suggested a moratorium of another two years to allow for delayed payment of statutory dues. The proposal also includes smaller annual payouts, extra time for repayment, and waivers of penalties. If this relief is approved, it can be a little easier for the company; otherwise, it will be difficult for Vodafone Idea to improve its financial condition.
Financial Struggle of Vodafone Idea
Vodafone Idea has AGR (Adjusted Gross Revenue) dues of around Rs 83,400 crore. Starting from March 2025, the company will have to pay around Rs 18,000 crore every year. Overall, the company’s total dues to the government, including penalty and interest, are around Rs 2 trillion.
This burden is so big that the company has repeatedly warned that it will not be able to survive without funding support. At present, Vodafone Idea has more than 198 million subscribers, and the company employs more than 18,000 people. But banks are still cautious about lending, as they feel that the risk is high until the AGR issue is resolved.
Idea Share Price And Future Funding Plans
Outgoing CEO Akshaya Moondra said in the June quarter earnings call that the company is exploring funding from non-banking sources. Vodafone Idea plans to continue its capex cycle, but with a smaller amount instead of the full Rs 25,000 crore funding.
At the same time, the company has formally requested the government to settle the AGR before the March 2026 deadline. If this happens, the confidence of banks can be restored, and fresh financing can also be unlocked.
Should You Buy, Sell, or Hold Idea Share Price?
Now the biggest question—what should be done with the idea share price? Experts are divided.
Motilal Oswal has given a sell rating for the stock, in which the target price has been kept at Rs 6 per share. Meaning, if you compare with the current levels, the stock can downside up to 8%. The brokerage firm says that the subscriber base is declining, and FY27-28 revenue and EBITDA estimates have also been cut.
On the other hand, ICICI Securities has given a Hold rating with a target price of Rs 7 per share. This means that if the company arranges timely funding and AGR is resolved, then there can be some upside. But it will all depend on what decision the government takes on the relief package and how quickly the trust of banks is restored.
Final Thoughts On Idea Share Price
There are still many uncertainties for Vodafone Idea. On one hand, government relief and funding support are very important for survival; on the other hand, the decline of subscribers and heavy dues also create a lot of pressure. If PMO’s relief proposal is approved, there can be a positive impact on the company in the short term, but long-term growth will be possible only when the revenue and subscriber base are stable.
The safest approach for investors right now is to not make decisions based on short-term hype and wait for the final decision of the PMO. For those who are already invested, it may be better to hold on, and those who want to make a fresh entry should wait for a little more clarity.
Disclaimer:
This article is for informational purposes only. This is not any kind of financial advice. Always consult your financial advisor before investing in the stock market.
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