Voda Idea shares surge 10% on AGR relief news
Shares of Vodafone Idea surged 10% in early trade on an ET report that the government is considering a proposal to waive 50% of interest and 100% of penalties and interest on penalties that make up a bulk of the adjusted gross revenue (AGR) dues that were levied on telcos after the 2019 Supreme Court order.
The Vodafone Idea stock opened at the upper circuit of Rs10.03 and was locked at that level in early trade on the Bombay Stock Exchange Monday.
The government proposal, if implemented, would mark a watershed for the telecom business in India and will go a long way toward ensuring that the market doesn’t end up as a private sector duopoly, analysts said.
People familiar with the matter told ET that the move, if finalised, will offer financial relief of over 1 lakh crore for telcos, more than half of which will accrue to distressed Vodafone Idea (Vi). The telco is staring at a repayment of thousands of crores of AGR dues to the government, starting FY26, raising questions about its viability.
Under the proposed relief, the AGR dues of Vi may come down by over 52,000 crore; for financially robust Bharti Airtel, by nearly 38,000 crore; and for Tata Teleservices, by around 14,000 crore, said a second person. Reliance Jio doesn’t have any legacy AGR dues and is not affected by the proposed measure. Tata Tele no longer offers retail mobility services, only enterprise mobility services.
Stock Trading
Maximise Returns by Investing in the Right Companies
By — The Economic Times, Get Certified By India's Top Business
