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Shares of Vodafone Idea surged sharply on Wednesday, rising nearly 8% in intraday trade amid reports of a fresh promoter-led capital infusion plan aimed at strengthening the telecom operator’s financial position.

The stock climbed to an intraday high of ₹12.84 on the NSE before trading around ₹12.74, up more than 7% from the previous close.

Investor sentiment improved following reports that Kumar Mangalam Birla is expected to lead a fresh round of confidence-building capital infusion into Vodafone Idea. According to reports, the company is planning a promoter-led fundraising exercise as it continues efforts to secure long-term financial stability and expand network investments.

The company’s board is scheduled to meet on May 16 to consider various fundraising options, including the issuance of equity shares or warrants.

The development comes at a crucial time for Vodafone Idea as the telecom operator continues to face funding and competitive pressures amid aggressive capital expenditure by larger rivals in the sector.

Reports also indicated that recent relief measures from the Department of Telecommunications (DoT) have helped ease near-term cash flow concerns. However, analysts believe the company still faces a sizeable funding gap that needs to be addressed to support network expansion, improve subscriber retention and strengthen 4G and 5G rollout plans.

The possibility of fresh promoter participation in fundraising appears to have boosted investor confidence, as markets interpret it as a positive signal regarding the promoters’ continued commitment toward the company’s revival efforts.

Vodafone Idea has remained under close watch over the past few years due to concerns around adjusted gross revenue (AGR) liabilities, subscriber losses, fundraising delays and competition from larger telecom players. At the same time, investors continue to track government support measures and potential strategic funding developments.

The stock also witnessed strong trading volumes during the session as traders reacted to expectations of improved liquidity visibility and possible strengthening of the company’s balance sheet.

Meanwhile, the telecom sector remains in focus amid ongoing industry consolidation, tariff hike expectations and increasing investments in digital infrastructure and next-generation network services.