Vodafone Idea (VI) shares saw a 3% surge in early morning trade after Citi reiterated its ‘Buy’ rating on the stock with a target price of ₹12. As of 10:09 AM, the shares were trading 3.21% higher at Rs 7.40.
A key driver behind this positive outlook is the government’s decision to convert ₹37,000 crore in spectrum dues into equity, making it a 49% stakeholder in VI. This development has also led to a significant upgrade in the company’s credit rating, with ICRA moving Vodafone Idea to an investment-grade rating of BBB–, a substantial improvement from its previous speculative-grade status.
Citi highlighted that this improved credit profile is crucial for unlocking new bank lending opportunities, addressing long-standing liquidity issues and providing support for VI’s long-term growth. The brokerage believes that these changes will strengthen the telco’s financial and operational foundation.
Additionally, Citi has maintained a Positive Catalyst Watch on both Vodafone Idea and Indus Towers, expecting continued momentum in the companies’ performance.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
