With growing hopes that the government will announce an AGR relief for the telecom giant today, Vodafone Idea’s (Vi) shares increased by more than 2 percent to reach a record high on December 31. In the early hours of December 31, the company’s shares reached a new 52-week high of Rs 12.36 per share.
Today, Vodafone Idea AGR relief?
According to many media sources, the Union Cabinet is scheduled to discuss Vodafone Idea’s AGR relief issue today. CLSA has previously said that the government would probably take into consideration a partial waiver of interest, fines, and interest on penalties that account for the bulk of the telco’s adjusted gross revenue (AGR) obligations.
Government Reevaluation and Relief Plan
“Vodafone Idea’s AGR dues are being reevaluated by the government, and a relief plan is expected to be revealed before year’s end. In Q2FY26, Vi’s total AGR obligations were about $780 billion, or US$8.7 billion. The brokerage said, “We think the government would probably contemplate waiver of interest (at least in part) and penalties and interest on penalties that make up the majority of the AGR dues.” It also said that Vi might get $8 billion in relief from the long-pending AGR obligations.
Financial Difficulties
Vodafone Idea has been having financial difficulties. It owes over Rs 83,400 crore in adjusted gross revenue (AGR) dues, with yearly payments of almost Rs 18,000 crore due in March 2025.
Due to banks’ reluctance to lend due to its financial difficulties, the heavily indebted operator has repeatedly warned that it cannot continue without financing help. Vi has around 198 million members and employs more than 18,000 workers.
Supreme Court Permission
A few weeks ago, the Supreme Court gave the government permission to thoroughly assess and reconcile all of the debt-ridden telecom company’s obligations, including interest and penalties, until FY17. For the financially strapped operator, this was considered a huge relief.
Department of Telecommunications Request
Vodafone Idea requested in September that the Department of Telecommunications (DoT) release penalties and interest on an AGR demand of Rs 9,450 crore, claiming that a large portion of the demand was related to the pre-FY17 period that had previously been resolved by the Supreme Court in 2020.
Of this sum, Vodafone Idea’s post-merger liabilities total Rs 2,774 crore, while the Vodafone Group’s pre-merger obligations total Rs 5,675 crore.
Government Equity Conversion
In March of this year, the government converted debts of Rs 36,950 crore into equity, making it the biggest stakeholder in Vodafone Idea with a roughly 49 percent ownership. The Center had already acquired a 33 percent share in 2023 as payment for statutory obligations totaling more than Rs 16,000 crore.
History of Vodafone Idea’s Share Price
The stock quickly more than doubled in four months after reaching a 52-week low of Rs 6.12 per share in August of this year. Today, it reached a new 52-week high of Rs 12.36 per share.
In the last month, the stock has increased by almost 25%, and in the last six months, it has increased by more than 66%. At the moment, the company’s market value is close to Rs 1.34 lakh crore.vodafone-idea-shares-52-week-high-agr-relief
