Vodafone Idea shares experienced a three-day rally, increasing by 17.5% and reaching Rs 7.92 on November 27. Speculation suggests that the Union Cabinet may approve waivers for bank guarantees associated with spectrum purchases made before 2022.

Currently, the telecom operator has bank guarantee obligations exceeding Rs 24,700 crore, with total liabilities alongside Bharti Airtel surpassing Rs 30,000 crore. Earlier this year, Vodafone Idea secured Rs 24,000 crore in equity funding and is actively seeking an additional Rs 25,000 crore in loans and Rs 10,000 crore in bank guarantees or letters of credit.

The government's potential policy shift aims to alleviate financial pressures in the telecom sector and enhance overall stability by extending relief to legacy spectrum holdings, following the Cabinet's 2021 reforms that eliminated the requirement for guarantees on future spectrum acquisitions.