Vodafone Idea shares rise 3% as report says telco may get 4-5 year moratorium on AGR dues

Vodafone Idea share price

The shares of Vodafone Idea (Vi) rose more than 3 percent to hit a fresh 52-week high on December 15 after a report said that the government may offer an interest-free moratorium of four to five years on over Rs 83,000-crore of the telecom company's pending adjusted gross revenue (AGR) dues.

The shares of the company rose to Rs 12.03 apiece in the morning trading hours on Monday, before paring some gains. The stock was up marginally at Rs 11.66, as seen at 10.15 am.

Here's what the report said:

After the end of the moratorium, Vodafone Idea will be required to pay arrears in six installments, but the amount may possibly be reduced to half after a reassessment of liabilities, the Economic Times reported citing people familiar with the matter.

A committee headed by a secretary-level official will be formed to hear the views of both the telecom department and Vi, the report cited one of its sources as saying. The decision will likely be announced in the coming weeks after the Union Cabinet approves the proposal, the report added.

Moneycontrol couldn't independently verify the report.

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:

The shares of Vodafone Idea hit a fresh 52-week high of Rs 12.03 apiece in the morning today. After hitting a 52-week low of Rs 6.12 per share in August this year, the stock rapidly nearly doubled (jumped around 97 percent) to its record high today.

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