Why is Idea Share Price Skyrocketing Today? Explained in Detail
Today, one stock has grabbed everyone’s attention in the market – Idea share price. On Monday, Vodafone Idea shares rose more than 8% with a tremendous rally and reached ₹ 8.30 on BSE. This was the biggest high of four months, and behind this rally there is a big legal development which is boosting the confidence of investors.
According to reports, the Supreme Court is going to hear a crucial case on this Friday, 19 September which is related to fresh Adjusted Gross Revenue (AGR) dues. These AGR dues are of around ₹9,450 crore, in which Vodafone Idea has to challenge the new demand of Department of Telecommunications (DoT).
Idea Share Price Surges After Supreme Court Hearing Update
Vodafone Idea filed a writ petition in the Supreme Court on 8 September, in which they disputed the new calculation of DoT. The company says that their revised demand is outside the scope of the 2019 SC ruling and many amounts have been counted twice. Hence, they have demanded a fresh recalculation of dues, especially from the pre-FY17 period.
The Supreme Court’s decision can be a game-changer here, as its direct impact is visible on Vodafone Idea share price. Within just one month, the shares have shown a rally of up to 35%, while on year-to-date (YTD) basis, only 3% growth has been recorded so far.
DoT’s stand and Vodafone Idea’s liabilities
DoT has justified in its affidavit that the additional demand is not a reassessment, but covers the accounting gap. According to a CNBC-TV18 report, these dues came to light after the financial accounts of the old years were completed.
Out of the total demand of ₹9,450 crore, ₹2,774 crore is for FY18–19, which applies to post-merger Vodafone Idea. Whereas, ₹5,675 crore are the liabilities of pre-merger Vodafone Group.
This means that this is a double burden for the company – new liabilities on one hand and stiff competition against Jio and Airtel on the other.
Idea Share Price Rallies Ahead of Key Hearing
September 15 also witnessed a big rally when shares rose by 7% intraday and reached ₹8.23. This rally was directly connected to the news of the tentative hearing date of the Supreme Court. This was a strong upside compared to the previous day’s close as the stock moved from ₹7.66 to ₹7.75 and then started trading in the ₹8+ range.
The company has clearly highlighted in its petition that AGR dues of Rs 2,774 crore for FY18–19 have been added twice. They have demanded that it be reconciled and a fresh calculation be done.
Vodafone Idea Share Price Under Pressure Despite Rally
Although Vodafone Idea share price is going up in the short-term, the financial health of the company is still under great stress. After March 2026, the company will have to make big investments to repay the dues as soon as the moratorium ends.
The government has already made it clear that Vodafone Idea will not get any fresh relief now. Minister of State for Communications Chandra Sekhar Pemmasani confirmed that till now the government has helped the telco through equity conversion, in which spectrum dues worth ₹36,950 crore were converted into equity in March 2025. Earlier in 2023 also, the government had taken almost 33% stake by converting dues worth ₹16,000 crore.
Nevertheless, the telco has admitted in a court filing that its survival is still uncertain without government support. High debt levels and tough competition from Jio–Airtel are a big challenge for the company.
Final Word on Idea Share Price Rally
Vodafone Idea’s case is a litmus test for the market. If the Supreme Court rules in favour of the company, Idea may get to see a further rally in share price. But if the demand is found valid, the financial burden on the company will increase even more.
Investors are now closely tracking this stock and its momentum looks positive in the short-term. But long-term sustainability will depend on how Vodafone Idea manages its liabilities and strengthens its market position.
Disclaimer:
This article is for informational purposes only. The details given here are based on market updates and are not financial advice of any kind. Consult your financial advisor before making any investment.
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