Investors dial in the sixth after the government has called

MUMBAI: Vodafone Idea shares rose more than 20% on Tuesday as the government decided to convert spectrum dues into equity. Analysts said that the possibility of stock -ling ging ging soon prefers it strong for pants, but investors would want to see more signs of resurrection in business possibilities to add to their long -term portfolio.

The government agreed to exchange spectrum dues of Rs 36,950 crore, including delayed outstanding payments after the expiration of the moratorium period in equity stocks.

While this conversion is expected to provide cash flow relief for Vodafone in equity, investors will only turn into a boom if they see evidence of resurrection in the subscriber base.

“Although this development is positive in the short term, the main concern is to monitor the falling subscriber base,” said Sneha Poded, Vice President of Motilal Oswal Financial Services. “Unless it stabilizes, Apmoves are not expected to sustain in the long run.”

This is the second time since 2023 that the government has announced a conversion into the equity of the dues.

“He has provided the opportunity to survive Vodafone Idea, but does not suggest long -term turnaround,” said Siddhashesh Mehta, research analyst at Semco Securities.

“While there is a possibility of a short -term rally, the price is not expected to be skyscrapers, and long -term benefits are not expected because the company is losing subscribers instead of getting new subscribers and does not seem to be a clear map for profitability,” Mehta said. “It is unlikely to rotate until these fundamentals improve.”

The CLS said Vodafone Idea is generating enough cash to fund its capital costs.

Brokerage said the company’s cash production in the December quarter was.5 24.5 billion (4 2,450 crore), the highest in August 2018 after Idea Cellular and Vodafone India’s merger.