Vodafone Idea shares jump 4% to fresh 52-week high on likely govt relief on AGR dues today

Vodafone Idea share price

• Vodafone Idea shares reach 52-week high on hopes of government AGR relief
• Cabinet may consider partial waiver of Vi's AGR dues, interest, and penalties
• Vi's stock has doubled since August, gaining 25% in the past month

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The shares of Vodafone Idea (Vi) jumped nearly 4 percent to hit a record high on December 31 amid rising expectations of the government announcing an AGR relief for the telecom major today.

The shares of the company hit a fresh 52-week high of Rs 12.50 apiece on December 31.

Vodafone Idea AGR relief today?

The Union Cabinet is expected to meet at 3 pm today to consider Vodafone Idea's AGR relief matter, several media reports claimed. The government is likely to consider a partial waiver of interest, penalties and interest on penalties that make the majority of the telco's adjusted gross revenue (AGR) dues, CLSA had earlier said.

"The government is working on reassessment of Vodafone Idea's AGR dues and reportedly a relief package will likely be announced by year-end. Vi’s aggregate AGR dues stood at an estimated ~780bn/US$8.7bn in Q2FY26. We believe the government will likely consider waiver of interest (at least in part) and penalties and interest on penalties that make up a bulk of the AGR dues," the brokerage has said. The relief on the long pending AGR dues could provide Vi will relief of $8 billion, it added.

Vodafone Idea has been struggling with dues, owing about Rs 83,400 crore in adjusted gross revenue (AGR) dues, with annual payments of nearly Rs 18,000 crore scheduled from March 2025

The debt-laden operator has repeatedly warned it cannot survive without funding support, as banks remain wary of lending given its financial stress. Vi employs over 18,000 people and has nearly 198 million subscribers.

Few weeks ago, the Supreme Court allowed the government to comprehensively reassess and reconcile all dues of the debt-ridden telecom company, including interest and penalties, up to FY17. This was seen as a major relief for the financially stressed operator.

In September, Vodafone Idea had sought a waiver of penalty and interest on an AGR demand worth Rs 9,450 crore raised by the Department of Telecommunications (DoT), arguing that much of it pertained to the pre-FY17 period already settled by the apex court in 2020. Out of this amount, Rs 2,774 crore relates to post-merger liabilities of Vodafone Idea, while Rs 5,675 crore pertains to pre-merger dues of the Vodafone Group.

The government became the largest shareholder in Vodafone Idea in March this year after converting dues worth Rs 36,950 crore into equity, taking its stake to nearly 49 percent. Earlier, in 2023, the Centre had picked up a 33 percent stake in lieu of statutory dues exceeding Rs 16,000 crore.

Vodafone Idea share price history:

After hitting a 52-week low of Rs 6.12 per share in August this year, the stock rapidly more than doubled in four months hit the fresh 52-week high of Rs 12.36 apiece today. The stock has gained around 25 percent in the past one month, and over 66 percent in the past six months.

The company currently has a market capitalization of nearly Rs 1.34 lakh crore.

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