Vodafone Idea shares sustain above FPO price, hit highest level since September 2024

Shares of Vodafone Idea Ltd., the debt-laden telecom service provider is trading with gains of over 4% on Thursday, December 11, sustaining above its Follow-on Public Offer (FPO) price of ₹11 per share.

The stock has gained in six out of the last eight trading sessions, now trading at the highest level since September 2024.

The stock has gained on substantial volumes on Thursday, with nearly 90 crore shares having changed hands, compared to its 20-day average of 70 crore.

Shares of Vodafone Idea have staged a recovery from the lows, ever since hopes of some forthcoming relief from the government with regards to the AGR dues gathered steam.

Brokerage firm CLSA wrote in its note that Vodafone Idea has expanded its 5G services rollout across 17 circles where it has 5G spectrum.

HSBC in a note on the telecom sector on December 5 wrote that Vodafone Idea continues to witness a decline in its subscriber base, which analysts have touted as a key trigger for the company's sustainability in the long-term.

HSBC maintained its "reduce" rating on Vodafone Idea with a price target of ₹5.8, expecting the stock to nearly halve from current levels.

There is no clear timeline yet on when will a AGR dues resolution will be worked out for Vodafone Idea, even as the government has made it clear on multiple instances that it has no intention of increasing its stake in the entity beyond the current 49%.

21 analysts have coverage on Vodafone Idea, where five have a "buy" rating, seven say "hold", while nine have a "sell" rating.

The consensus estimates of price targets indicate a potential downside of 21% from current levels.

Shares of Vodafone Idea are trading 4.2% higher on Thursday at ₹11.15. The stock is up 9% in the last one month.