Shares of Vodafone Idea Ltd rose over 5% in early trade on Thursday, staging a rebound a day after the stock came under heavy pressure following developments related to the company’s adjusted gross revenue (AGR) liabilities.
The recovery came after investors digested fresh disclosures made to stock exchanges late Wednesday.
In a filing with the BSE, Vodafone Idea said its promoters and promoter group entities have decided to infuse more than INR 5,000 crore into the company. The proposed infusion is aimed at strengthening the telecom operator’s financial position and supporting ongoing operations.
The filing clarified that the funds would be brought in through a mix of equity-linked instruments and promoter support, which will require necessary approvals.
The stock had declined sharply in the previous session amid concerns over Vodafone Idea’s long-pending AGR dues and uncertainty around relief measures. The confirmation of promoter funding seems to have improved near-term sentiment, hence triggering buying interest in the counter.
Vodafone Idea continues to face financial stress due to high regulatory dues and competitive pressures in the telecom sector. This has made capital support a closely watched factor for the stock.
Market participants are now monitoring the timeline and structure of the promoter infusion, along with any further clarity on AGR payments and government support measures. Execution of the proposed funding remains key for sustaining the recent rebound in the share price.
