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Shares of beleaguered telecom player Vodafone Idea rose another 4% in Wednesday's trading session on 6 May, extending its gains for the third day in a row and hitting levels last seen over two months ago, driven by multiple positive developments.
Vodafone Idea stock price gained 4.07% to hit the day's high of ₹11.24 today — its highest level since 19 February. Meanwhile, in three sessions, the telco has risen almost 10%.
Today's rise comes on the back of the re-appointment of Kumar Managalam Birla as non-executive chairman of Vodafone Idea, after a span of nearly five years. Birla had stepped down from this post in 2021.
He will replace Ravinder Takkar, who has stepped down from the position but will continue to assist Birla as non-executive vice-chairman, according to a regulatory filing.
Vodafone Idea said that the board of directors has "Approved the appointment of Kumar Mangalam Birla, a Non-Executive Director, as the Non-Executive Chairman of the Board of Directors of Vodafone Idea Limited with effect from 5th May 2026."
Birla's appointment is seen as boosting investor sentiment and driving the turnaround for Vodafone following significant government relief on adjusted gross revenue (AGR) dues.
A PTI report stated that Birla had, on several occasions, given up hope of continuing the operations of Vodafone Idea following the Supreme Court order in 2019 on the company's AGR dues.
However, the government has extended a fresh lifeline by allowing conversion of debt into equity, along with a significant reduction in the AGR dues, as it looks to avoid the telecom sector turning into a duopoly.
The government has relaxed Vodafone's AGR dues by about 27% to ₹64,046 crore after reassessing the statutory dues from ₹87,695 crore frozen by the cabinet on December 31, 2025.
The figure, though, is 20% below what was outstanding as per the company. However, global brokerage Citi said that with no interest accruing and the effective 10-year repayment moratorium remaining in place (99% of the dues are payable over FY36-41), this meaningfully improves the economics of the liability.
This AGR relief also leaves Vodafone in a better position to close its pending ₹25,000 crore bank debt raise, which would, in turn, enable it to commence execution of its ₹45,000 crore three-year capex plan that was outlined by the management in the January 2026 strategy update. "Closure of this debt funding will therefore now be key to monitor," said Citi, which has pegged Vodafone Idea's share price target at ₹14.
The company, however, remains loss-making as it reported a loss of ₹17,418 crore during the nine months ended December 2025, and its net worth stood at negative ₹87,744 crore.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Saloni Goel has over nine years of experience as a business journalist, with a strong track record of covering the financial markets. Over the course of her career, she has reported extensively on global and domestic equities, IPO market activity, commodities, and broader macroeconomic trends. Her reporting reflects a keen eye for detail, data-driven analysis, and the ability to spot emerging themes early.<br> At Mint, Saloni has been part of the markets team for nearly two years, where she currently works as Chief Content Producer. In this role, she plays a key part in shaping market coverage, driving editorial strategy, and ensuring timely, accurate, and insightful reporting across. She has been closely involved in breaking news coverage and in crafting stories that help decode the complex financial developments.<br> Before joining Mint, Saloni worked with some of India’s leading business newsrooms, including The Economic Times and Business Standard. Throughout her career, she has worn multiple hats—ranging from reporting and editing to contributing in-depth features and identifying new storytelling formats and market trends.<br> Her experience in fast-paced digital newsrooms has given her an edge in simplifying complex market concepts without losing analytical depth. Outside of work, Saloni enjoys reading books and spending time with her pet.
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