Shares of Vodafone Idea Ltd surged nearly 10% on Monday after reports confirmed that the Supreme Court has permitted the government to review potential relief on the telecom operator’s Adjusted Gross Revenue (AGR) dues.
The moratorium on the company’s spectrum and AGR payments ended in September, with Vodafone Idea and other telecom firms continuing to dispute the government’s method of calculating AGR.
According to CNBC-TV18, the telecom operator has sought relief on both its supplementary AGR dues of around ₹9,500 crore and the total dues of approximately ₹80,000 crore.
Adjusted Gross Revenue (AGR) refers to the income figure used to determine the licence fees and spectrum charges payable by telecom companies to the government.
The positive development also boosted related stocks — Indus Towers, a major creditor to Vodafone Idea, saw its shares rise up to 5.8% to ₹384.55. Vodafone Idea’s stock closed 9.28% higher at ₹9.54 per share on the NSE.
Supreme Court’s Observation
On October 27, the Supreme Court clarified that the Centre can reconsider Vodafone Idea’s AGR liabilities, leading to optimism that the review might cover the entire dues, not just the supplementary claims.
Vodafone Idea had argued that supplementary AGR claims were unjustified, as the 2019 Supreme Court ruling had already finalised its liabilities.
During the hearing, Solicitor General Tushar Mehta, representing the government, informed the Court that the Centre now holds a 49% equity stake in Vodafone Idea and that around 20 crore subscribers rely on its network.
Given these circumstances, the government expressed willingness to examine the company’s plea to ensure the interests of consumers are protected.
The Chief Justice of India (CJI) noted that since the government has infused equity and has a significant stake in the company’s continuity, there is no legal impediment to reconsidering the matter.
Meanwhile, The Economic Times reported that Tillman Global Holdings (TGH), a US-based private equity firm, is in talks to invest $4–6 billion in Vodafone Idea, potentially gaining operational control of the telecom company.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to conduct their own research or consult a qualified financial advisor before making any investment decisions.
