Ambit Insights sees the government’s conversion of spectrum dues into equity as a critical lifeline for Vodafone Idea, improving its chances of securing Rs 250 billion in debt funding by December 2025 and facilitating Rs 500-550 billion in capex over FY25-28. The brokerage maintains a buy rating, with a target price of Rs 15, implying a 79% potential upside. While the company’s solvency improves, it still relies on further tariff hikes and AGR relief for long-term sustainability and to stabilize subscriber churn, the brokerage said, adding that VI remains a high-risk investment, dependent on key external factors like debt funding and potential AGR relief.

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