Shares of Vodafone Idea (Vi) climbed more than 2% on Tuesday, December 31, touching a fresh 52-week high amid growing expectations that the Union Cabinet may consider relief on the telecom company’s long-pending adjusted gross revenue (AGR) dues.
The stock rose to an intraday high of ₹12.36 apiece during morning trade, marking its highest level in the past year. Trading volumes on the NSE remained strong as investor interest picked up on speculation surrounding a potential policy decision.
According to multiple media reports, the Union Cabinet is expected to deliberate on Vodafone Idea’s AGR-related matter. The government is reportedly examining options such as partial relief on interest, penalties, and interest on penalties, which together form a significant portion of the company’s AGR liabilities.
Vodafone Idea continues to face heavy financial pressure due to outstanding AGR dues of around ₹83,400 crore. Annual repayments of nearly ₹18,000 crore are scheduled to begin from March 2025, adding to the company’s cash flow challenges. The telecom operator has repeatedly stated that long-term survival depends on timely funding support and relief measures.
The company employs over 18,000 people and serves nearly 198 million subscribers across India. Its ability to sustain operations has remained under scrutiny, as lenders have been cautious amid its stretched balance sheet.
In a recent development, the Supreme Court permitted the government to comprehensively reassess and reconcile Vodafone Idea’s dues, including interest and penalties, up to FY17. This move was widely viewed as a positive step for the financially stressed telecom operator.
Earlier, Vodafone Idea had also sought a waiver on penalty and interest related to an AGR demand raised by the Department of Telecommunications, stating that a substantial portion of the dues related to periods already settled in earlier proceedings.
The government emerged as the largest shareholder in Vodafone Idea in March this year after converting statutory dues worth ₹36,950 crore into equity, raising its stake to nearly 49%. Previously, in 2023, the Centre had acquired a 33% stake through a similar conversion of dues.
Vodafone Idea Share Price Performance
After hitting a 52-week low of ₹6.12 in August, the stock has more than doubled within four months to reach ₹12.36. Vodafone Idea shares have gained around 25% over the past month and over 66% in the last six months.
The company currently commands a market capitalisation of approximately ₹1.34 lakh crore.
Disclaimer: Stock market investments are subject to market risks. This article is for informational purposes only.
