Shares of Vodafone Idea (Vi) witnessed sharp volatility on Wednesday, December 31, tumbling nearly 20% from their intraday peak after media reports suggested that the Union Cabinet has approved an adjusted gross revenue (AGR) relief package for the telecom operator.
The stock dropped as much as 15% to hit ₹10.25 per share, reversing early gains. Earlier in the session, Vodafone Idea shares had surged over 6% to touch a fresh 52-week high of ₹12.80.
The sudden reversal came after reports indicated that the Union Cabinet had cleared an AGR relief package for Vodafone Idea. According to media sources, the government has approved a five-year moratorium on the company’s AGR dues.
Reports further stated that Vodafone Idea’s AGR liabilities amounting to ₹87,695 crore have been frozen, with repayments proposed to be rescheduled over a longer period spanning FY32 to FY41. Dues related to FY18 and FY19 are expected to be paid over the next five years. It was also reported that the frozen AGR dues may be reassessed by the Department of Telecommunications based on audit findings.
The reports could not be independently verified at the time of publication.
Vodafone Idea has been under severe financial stress due to large statutory dues and high debt levels. The company has repeatedly flagged concerns over its ability to sustain operations without funding support, as lenders remain cautious. The telecom operator employs over 18,000 people and serves nearly 198 million subscribers across the country.
Earlier this year, the Supreme Court allowed the government to reassess and reconcile Vodafone Idea’s dues, including interest and penalties, up to FY17, providing some relief to the company. In September, Vodafone Idea had also sought a waiver of penalty and interest on an AGR demand raised by the Department of Telecommunications, citing overlap with liabilities already settled in earlier proceedings.
The government became Vodafone Idea’s largest shareholder in March after converting dues worth ₹36,950 crore into equity, taking its stake to nearly 49%. Previously, in 2023, the Centre had acquired a 33% stake through the conversion of statutory dues exceeding ₹16,000 crore.
Vodafone Idea Share Price Performance
Vodafone Idea shares have declined around 16% over the past five trading sessions. However, the stock is still up more than 3% over the last one month and has gained approximately 38% over the past six months.
Disclaimer: Stock market investments are subject to market risks. This article is for informational purposes only.
