Vodafone Idea Shares Surge as Report Hints at AGR Moratorium

Market Performance

Shares of Vodafone Idea (Vi) rose over 3% on December 15, hitting a fresh 52-week high of ₹12.03. The stock has nearly doubled in four months, bouncing back from its August low of ₹6.12. As of 10:15 am, the stock was trading marginally lower at ₹11.66, reflecting healthy market activity.

Main News

The rally follows reports suggesting that the government may grant Vodafone Idea a 4–5 year interest-free moratorium on over ₹83,400 crore of pending AGR dues. Under the proposed plan:

• Arrears would be payable in six instalments after the moratorium.
• The total liability could potentially be reduced by half after a reassessment.
• A committee led by a secretary-level official will evaluate submissions from both the telecom department and Vodafone Idea.

The final decision is expected after Union Cabinet approval in the coming weeks.

Company Details

Vodafone Idea has been under financial stress due to massive AGR dues and limited access to bank funding. Key highlights:

• Total AGR dues: ₹83,400 crore, with annual payments of nearly ₹18,000 crore starting March 2025.
• Workforce: Over 18,000 employees.
• Subscriber base: Approximately 198 million.
• Government stake: Nearly 49% after converting dues into equity earlier this year.

Recent Supreme Court rulings allowed the government to reassess all dues, including penalties and interest, up to FY17, providing a significant relief to the company.

Summary

Vodafone Idea’s stock surge reflects growing optimism over potential regulatory relief. A moratorium on AGR dues and possible reduction in liabilities could ease financial stress, while the company continues to serve a massive subscriber base. The stock’s strong recovery from its August lows highlights renewed investor confidence in Vi’s ability to navigate its debt challenges.