Citi upgraded Vodafone Idea to "buy" with a target price of Rs 13 per share, citing a significant bank guarantee waiver for spectrum payments. This relief eases financial pressure, improving funding prospects.

Citi said that any progress on Vodafone Idea's debt funding will be a key monitorable going forward and an added trigger for both Vodafone Idea and Indus Towers.

Vodafone Idea stock has underperformed the market in the last six months as it has fallen 57 per cent, while slipping 52 per cent in the last one year. In comparison BSE Sensex has fallen 0.56 per cent in the last six months and 8.8 per cent in a year.

The shares of Vodafone Idea experienced a jump in Mondays intraday trading, surging by 7% to reach Rs 8 apiece on the BSE. The uptick followed the announcement that the Department of Telecommunications (DoT) had waived the requirement for financial bank guarantees (FBGs) for spectrum acquired in auctions held in 2012,

Vodafone Idea said DoT has dispensed with the requirement of submission of financial bank guarantees for the spectrum acquired in spectrum auctions held in 2012, 2014, 2015, 2016 and 2021.

Prior to this announcement, Vodafone Idea was supposed to submit bank guarantees worth nearly ₹24,800 crore against each spectrum instalment, 13 months prior to the instalment due for the above auctions.