Overview

• Vodafone Idea share price traded at Rs. 9.55 with minor gains after a volatile session marked by strong trading volume.

• The withdrawal of an Rs. 8,500 crore tax demand provided a major sentiment boost for investors.

• Despite denying $ 6 billion investment rumours, Vodafone Idea remains under close watch for funding clarity and operational revival.

Vodafone Idea share price traded marginally higher on November 4 to Rs. 9.55. It was up 0.10% after seeing a highly volatile session between Rs. 9.50 and Rs. 9.76. The trading volume of the stock at 78.39 crore shares worth a total turnover of Rs. 75,101.91 lakh on NSE. Let’s explore a Vodafone Idea share price analysis in detail based on Moneycontrol data. 

Current Performance

Vodafone Idea stock’s market capitalisation was at Rs. 1.03 lakh crore now, and it is among the most actively traded telecom stocks on Dalal Street. The VWAP stood at Rs. 9.61, which indicated decent buying interest amidst profit-booking at higher levels. Vodafone Idea’s 52-week range is from a high of Rs. 10.57 to a low of Rs. 6.12, indicating a sharp rebound in investor confidence over the last few months.

Vodafone Idea share price chart on Moneycontrol shows gains of 0.10% at press time:

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Vodafone Idea Tax Relief Details

Investor optimism in Vodafone Idea got a boost after media reports said the Income Tax Department had dropped a decade-and-a-half-old tax demand of about Rs. 8,500 crore against Vodafone India Services. The dispute originated in FY08 over the sale of the company's Ahmedabad-based call centre business to Hutchison Whampoa Properties.

The sources said the Commissioner of Income Tax has accepted Vodafone's formal petition and ordered to withdrawal of the demand order, thus ending the decade-long litigation. The case had been pending before the apex court since 2016 after the Income Tax Department filed an appeal against the Bombay High Court order that went in favour of Vodafone.

This is the second big reprieve for Vodafone Group in India in weeks, after the Supreme Court had, earlier this month, granted telcos more time to pay their dues in the AGR case. Both are considered major milestones in firming up the financial situation and restoring investor faith in Vodafone Idea.

Company Denies $ 6 Billion Investment Rumours

The spotlight also fell on Vodafone Idea amid reports that US-based private equity firm Tillman Global Holdings was planning to invest between $4 to and 6 billion in the company. However, TGH categorically denied the reports across multiple exchanges.

The speculation caused Vodafone Idea's share price to jump sharply last week. It reached an intraday gain of almost 14% and, for a short period, crossed the Rs. 10 mark, its biggest single-day gain since April 2024. The company was quick to issue a clarification to the stock exchanges, completely denying the reports.

Vodafone Idea termed the investment rumors as ‘speculative and baseless’ in its statement, thus confirming that no such discussions were underway. The clarification tempered the market enthusiasm. It led to some mild profit-taking in the following sessions.

Analyst Sentiments

22 market analysts on Moneycontrol recommended a ‘Sell’ rating for Vodafone Idea shares. About 36% of ratings were ‘Sell’, while only 9% suggested ‘Buy’ and 14% ‘Outperform’. The beta of the stock is 1.46, suggesting higher volatility than the benchmark. Technically, the pivot point for Vodafone Idea share price exists at Rs. 9.42, with key resistance levels at Rs. 10.08 and Rs. 10.62, while support lies near Rs. 8.88 and Rs. 8.22.

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Investor Outlook

Operational efficiencies at Vodafone Idea, with a focus on network quality improvement and 5G readiness, might still offer an opportunity in the medium term, despite lingering debt concerns. Recent regulatory and legal reliefs could also facilitate the telecom giant's gradual comeback to regain market confidence. Sustained progress, though, is likely to depend on a fresh equity infusion or strategic investment to strengthen its balance sheet for funding long-term growth.

FAQs

1. Why has the Vodafone Idea share price increased recently?

Vodafone Idea stock rose following reports that the Income Tax Department of India withdrew an Rs. 8,500 crore demand against the company, thus ending its decade-long legal dispute. The move restored some investor confidence and improved market sentiment.

2. What was the Rs. 8,500 crore tax case?

The dispute originated in 2008 when Vodafone sold its Ahmedabad-based call centre business to Hutchison Whampoa Properties. The authorities said this was an international transaction and was liable to be taxed, a view rejected by the courts. The case dragged on for years before it was finally withdrawn.

3. Is Vodafone Idea receiving a $ 6 billion investment?

No. Vodafone Idea denied reports that it had received an investment of as much as $6 billion from Tillman Global Holdings. It called such reports "speculative and baseless" and said no such discussions are underway.

4. What do analysts think about Vodafone Idea’s stock?

Out of 22 analysts on Moneycontrol, 36% recommend selling the stock, 27% suggest holding, and 23% rate it as buy or outperform. Most remain cautious due to the company's debt load and lack of fresh funding.

5. What's next for Vodafone Idea investors?

Investors will be looking for tangible announcements on funding or partnerships that would shore up Voda Idea's balance sheet. A legal reprieve is beneficial, but sustainable growth requires deleveraging and 5G expansion. Several media reports suggested that TGH was in advanced discussions to acquire a majority stake in the indebted telecom operator, which is facing relentless operational challenges.