The shares of Vodafone Idea (Vi) rose more than 2 percent to hit a record high on December 31 amid rising expectations of the government announcing an AGR relief for the telecom major today.The shares of the company hit a fresh 52-week high of Rs 12.36 apiece in the morning trading hours of December 31.The Union Cabinet is expected to consider Vodafone Idea's AGR relief matter today, several media reports claimed. The government is likely to consider a partial waiver of interest, penalties and interest on penalties that make the majority of the telco's adjusted gross revenue (AGR) dues, CLSA had earlier said.
"The government is working on reassessment of Vodafone Idea's AGR dues and reportedly a relief package will likely be announced by year-end. Vi’s aggregate AGR dues stood at an estimated ~780bn/US$8.7bn in Q2FY26. We believe the government will likely consider waiver of interest (at least in part) and penalties and interest on penalties that make up a bulk of the AGR dues," the brokerage has said. The relief on the long pending AGR dues could provide Vi will relief of $8 billion, it added.Vodafone Idea has been struggling with dues, owing about Rs 83,400 crore in adjusted gross revenue (AGR) dues, with annual payments of nearly Rs 18,000 crore scheduled from March 2025
The debt-laden operator has repeatedly warned it cannot survive without funding support, as banks remain wary of lending given its financial stress. Vi employs over 18,000 people and has nearly 198 million subscribers. On Tuesday, Union telecom minister Jyotiraditya Scindia also told PTI that the government has been making an effort to revive Vodafone Idea and BSNL to prevent the market from getting into a duopoly and continue to keep the market competitive to protect the interests of consumers.. So far this year, the telecom stock has seen a massive 52% rise, according to data available on BSE.Anshul Jain, Head of Research at Lakshmishree, said that Vodafone Idea stock is consolidating in a flag-like structure just below the major resistance at 12.4, signaling pressure build-up at a critical supply zone."The consolidation remains tight, suggesting sellers are getting absorbed rather than dominating. Trend structure is improving, but confirmation is still pending. A decisive move above 12.4, backed by heavy volumes, is essential to validate a fresh breakout and confirm institutional participation. If this trigger is met, the stock can quickly move toward the weekly order block near 15.05, where supply is expected to re-emerge," he added.
For the unversed, Indian government officially increased its stake in the financially struggling telecom operator Vodafone Idea (Vi) to 48.99 per cent from 22.60 percent. This increase followed the conversion of ₹36,950 crore of the company’s spectrum payment dues into equity shares. This move by the government occurred on Monday, April 21, 2025.This is not the first instance of government intervention to ease Vi's financial woes. In February 2023, the government had also converted Vi’s debt of about ₹16,130 crore into equity. This previous conversion comprised interest arising from the deferment of adjusted gross revenue (AGR) and spectrum instalments.