Vodafone Idea shares on Monday fell by 5% on Monday after a sharp mid-week rally powered by expectations of government relief on adjusted gross revenue. On 5 December, the share closed at ₹10.80, up 1.12% on the day and up 8.2% over the previous two weeks, with gains in 8 of the last 10 sessions. Telecom Minister Jyotiraditya Scindia recently indicated that the Centre could finalise AGR relief recommendations by the end of 2025, sparking a near 4% rally in the stock on 2 December and a sustained up‑move over the next few days.
Scindia said the Ministry of Communications is currently assessing the legal limits of the ruling to determine what actions are permissible. “The judgment needs to be evaluated from the point of view of what can be done and what cannot be done. We cannot cross the boundaries of the SC judgment," he told CNBC-TV18.He further indicated that the Centre may complete its review and issue final recommendations within a couple of weeks. The broad framework of a possible relief package could be announced by the end of the year, subject to legal clearance.Earlier, on October 27, the Supreme Court observed that given the Centre’s stake in Vodafone Idea and its large consumer base of around 20 crore users, it saw no hurdle in the government reconsidering the company’s AGR dues plea.
The stock is currently trading at 10.27 and experts have predicted a downside of Rs.9.50 and although Vodafone Idea shares are affected by news, the long-term structure of Vodafone Idea is weak, the counter could show positive moves on anticipation of AGR relief.From a technical standpoint, Vodafone Idea is trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This suggests that the stock has maintained an upward momentum over multiple time horizons, which may be indicative of sustained investor confidence despite short-term fluctuations. Vodafone Idea’s overall AGR dues stand at ₹83,400 crore, with annual payments of ₹18,000 crore due from March. Including penalties and interest, its total liabilities to the government are estimated at about ₹2 lakh crore. The telco has previously said its current cash flows are insufficient to meet these obligations.Vodafone Idea share price has rallied 9% in one month and has jumped by 58% in three months. The telecom stock has rallied 30% on a year-to-date (YTD) basis, while it has gained 26% in one year. Vodafone Idea share price has risen 25% in the past three years.