Citi maintains buy rating on Vodafone Idea, says shares may rally 70% after major debt relief
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After the government’s approval of a significant bank guarantee waiver for spectrum payments provided a lifeline to Vodafone Idea, global brokerage firm Citi assigned the debt-laden telecom operator a "buy" rating with a target price of Rs 13 per share, indicating a potential 70% upside from current levels. The government’s decision to waive the requirement for bank guarantees on spectrum acquired in auctions from 2012 to 2021 has provided a crucial boost to Vodafone Idea, easing the financial pressure on the struggling telecom giant, Citi noted. Prior to this move, Vodafone Idea was required to submit bank guarantees worth nearly Rs 24,800 crore for spectrum dues, a burden that had hindered its ability to secure debt funding. Citi noted that this waiver addresses a critical roadblock for Vodafone Idea, paving the way for improved funding prospects. The waiver also benefits Indus Towers, where Citi has maintained a "positiv...