Vodafone Idea Shares Jump 6% as Government May Offer Relief on Rs 84,000 Crore AGR Dues

Vodafone Idea Shares Jump 6% as Government May Offer Relief on Rs 84,000 Crore AGR Dues

Vodafone Idea shares surged over 6 percent in early trade on June 24, following reports that the central government is considering relief on the company’s Rs 84,000 crore regulatory dues. The stock was seen trading at Rs 6.96 per share.

According to an Economic Times report, the government — which is now the largest equity holder in Vodafone Idea — is exploring various options to prevent the telecom operator from heading towards bankruptcy. The discussions are taking place after Vodafone Idea reportedly informed the government that it may not survive beyond FY26 without immediate financial support.

Among the options being considered are:

  • Extending the repayment period from 6 years to 20 years
  • Applying simple interest instead of compound interest on the pending dues
  • Introducing a token annual payment of Rs 1,000-1,500 crore until a final AGR verdict is announced

Sources said a combination of these may be used to help debt ridden telecom company pay its dues.

Earlier this year the government had converted its spectrum dues into equity and as a result its stake in Vodafone Idea went up from 22.6% to 48.99%. But the promoters still have operational control of the company.

Even after the equity conversion, DoT has clarified that it has no plans to convert remaining dues into equity. DoT has also warned that Vodafone Idea may not be able to pay its Rs 18,064 crore dues by end of FY26 and may not be able to operate in FY27.

Supreme Court has rejected all telecom companies’ plea to reduce or waive part of their AGR dues.

Vodafone Idea’s stock has been underperforming, down 60% in last one year and 13% in 2025 so far.

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Source: Moneycontrol

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