Vodafone Idea Share Price Hit 20-Month High, Surge 75% in 2 Months on Rating Upgrades and Growth Plans

Vodafone Idea share price (NSE: IDEA) extended their strong rally on June 3, rising nearly 6% during intraday trade to touch a 20-month high of ₹15.08 on the BSE. The stock reached its highest level since September 2024 as investors reacted positively to recent credit rating upgrades and the company's long-term growth plans.

Over the past 2 months, Vodafone Idea shares have surged about 75%, climbing from around ₹8.60 to above ₹15.

Vodafone Idea Share Price Performance

At around 2:01 PM, the Vodafone Idea Share Price was trading 5.4% higher at ₹14.92, even as the BSE Sensex was down 0.54%.

Trading activity remained robust, with nearly 937 million shares changing hands across the NSE and BSE.

Credit Rating Upgrade Boosts Sentiment

Investor confidence improved after rating agency ICRA upgraded Vodafone Idea's credit rating and revised its outlook to "Stable."

The upgrade came shortly after a similar move by Crisil Ratings.

According to ICRA, the improved rating reflects stronger support from the Aditya Birla Group (ABG), one of the company's promoter groups.

Promoter Support Strengthens Confidence

ICRA highlighted the reappointment of Kumar Mangalam Birla as Chairman of Vodafone Idea and the proposed equity infusion of around ₹4,730 crore through a preferential warrant issue to a promoter group entity.

The rating agency noted that these developments demonstrate the promoter group's continued commitment to supporting Vodafone Idea's operations and long-term growth.

According to ICRA, the Aditya Birla Group has consistently provided financial and operational support to the telecom company and is expected to continue doing so.

₹45,000 Crore Capex Plan

Vodafone Idea has outlined a capital expenditure plan of approximately ₹45,000 crore over FY27 to FY29.

The investment will be used to:

• Expand 4G coverage in key circles
• Roll out 5G services
• Increase network capacity
• Improve overall service quality

The company plans to fund the programme through debt, non-fund-based facilities, internal cash generation and other cash inflows.

Higher Tariffs and Better Network Could Support Growth

ICRA believes that ongoing network investments, combined with potential industry-wide tariff hikes over the next 12 to 24 months, could help improve Vodafone Idea's Average Revenue Per User (ARPU).

Read More: Power Mech Projects Share Price Gains Over 6%; Secures ₹296 Crore Mumbai Monorail Contract

Conclusion

Vodafone Idea's recent rally reflects growing investor confidence in the company's turnaround strategy. Credit rating upgrades, continued promoter support, fresh capital infusion plans and a ₹45,000 crore network expansion programme have strengthened market sentiment. 

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