Vodafone Idea clarifies on buzz over AGR relief, says 'haven't received any communication from govt'

Vodafone Idea's clarification on AGR dues relief

• Vodafone Idea denies receiving official AGR relief communication from government
• Shares fell over 11 percent after reports of Cabinet-approved AGR relief package
• Cabinet reportedly approved a 5-year moratorium on Vodafone Idea's AGR dues

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After several media reports claimed the Union Cabinet has approved an AGR relief plan for Vodafone Idea, the telecom major clarified that it has not received any such communication from the government.

Vodafone Idea issued a statement after stock exchanges sought clarification over the media reports, which led to significant volatility in the stock price today.

Cabinet approves five-year moratorium on Vodafone Idea AGR dues, say sources:

The Union Cabinet has approved an adjusted gross revenue (AGR) relief package for Vodafone Idea, sources told Moneycontrol. The government has given its nod for a 5-year moratorium on the AGR dues of the telecom giant, they added.

A DoT committee will be formed to give relief to the telco by recalculating and revaluating the AGR dues, including considering interest and penalty reversal if any, the government sources said, adding that the committee may reassess the frozen AGR dues based on audit reports.

The Cabinet approved the freezing of Vodafone Idea's AGR dues worth Rs 87,695 crore, whose payment is now being rescheduled to FY32-FY41, they added. AGR dues of FY18 and FY19 shall be payable by the company over the next five years, the sources said.

Vodafone Idea share price:

The shares of Vodafone Idea tumbled over 11.5 percent after media reports claimed that the Union Cabinet has approved an adjusted gross revenue (AGR) relief package for the telecom giant.

Earlier during the day, the shares of the company dropped 15 percent to hit an intraday low of Rs 10.25 apiece. This came after the stock jumped more than 6 percent to hit a fresh 52-week high of Rs 12.8 apiece.

The shares of the company ended the session and the year at Rs 10.67 apiece.

Also read: Here's why Vodafone Idea's shares fell 11% despite likely relief from Cabinet