Vodafone Idea Share Price Jumps Over 7% as Government Backs AGR Resolution | Stock Market Today

Market Performance

Vodafone Idea share price surged more than 7% on Friday, drawing strong attention in the stock market today. The rally came after a crucial update in the long-standing Adjusted Gross Revenue (AGR) case, where the government signaled that it is not opposing Vodafone Idea’s plea before the Supreme Court.

Main News

The Centre told the apex court that since it is also an equity holder in Vodafone Idea, a solution is required to bring clarity on AGR dues. The statement lifted investor sentiment and triggered sharp buying in the stock.

• Government stance: “Not opposing Vodafone Idea plea, some solution is required, government is also an equity holder. Some solution may be required, subject to Supreme Court approval,” the Centre said before the court.
• Court proceedings: A bench led by Chief Justice B R Gavai, with Justices K Vinod Chandran and N V Anjaria, fixed the next hearing for September 26.
• Representation: Senior advocate Mukul Rohatgi appeared for Vodafone Idea, while Solicitor General Tushar Mehta represented the Centre.

The Supreme Court, however, made its position clear, remarking that, “There has to be some finality to these proceedings.”

Company Details & AGR Case Timeline

The AGR issue has been at the center of Vodafone Idea’s financial troubles for years. The company recently filed a fresh plea on September 8, asking the Department of Telecommunications (DoT) to re-assess and reconcile AGR dues up to FY 2016-17 as per the Deduction Verification Guidelines of February 3, 2020.

• September 2020: Supreme Court allowed telecom operators a 10-year repayment window to clear dues of around ₹93,520 crore. Operators were directed to pay 10% by March 31, 2021, with the rest in annual installments until March 31, 2031.
• July 2021: The court dismissed pleas by Vodafone Idea and Bharti Airtel that sought rectification of AGR calculation errors, upholding DoT’s demand as final.
• October 2019: The dispute originated when the Supreme Court upheld DoT’s definition of AGR, which expanded the scope of revenues on which levies were calculated.

The matter will now be taken up again on September 26, when Vodafone Idea’s plea and the government’s stand will be considered together.

Summary

Vodafone Idea share price gained momentum today, rising over 7%, as the government softened its stance in the AGR case before the Supreme Court. By acknowledging the need for a solution and aligning with the company’s plea, the Centre offered a rare boost of confidence to investors.

All eyes are now on the September 26 hearing, which could decide the next chapter of Vodafone Idea’s long legal battle over AGR dues.