Vodafone Idea (Vi) shares moved higher to around ₹12 after Telecom Minister Jyotiraditya Scindia said that consultations regarding the company’s adjusted gross revenue (AGR) dues are currently in progress. The statement lifted investor sentiment, as any potential relief or clarity on AGR liabilities could ease Vi’s long-standing financial stress. Scindid stated that the talks are ongoing but it is the Chief Executive Officer (CEO) of the company who should be defining corporate strategy.“I don’t think because you (the government) are an equity holder and a minority at one at that, you can advise them (the company). It is the CEO, who should be defining what the corporate strategy is. It is for that company to define,” Scindia told businessline in an interview.
The government would, of course, like to see the company prosper, service its customers well and grows. “But that responsibility must lie with the management, and not with the Department of Telecom,” the Minister added. The government has a 49 per cent stake in Vodafone-Idea, and the company is still struggling to retain customers and in major losses. Recently, the Supreme Court allowed the government to reassess Vodafore--Idea’s AGR dues, which has come as a lifeline for the company under severe financial stress.Meanwhile, the company on Friday said that it has commenced the next phase of its fifth-generation (5G) network rollout in additional cities, while bolstering 4G capacity. The company’s 5G services are already available in 29 cities.
The company’s shares have continued to gain traction on Dalal Street in recent months, rebounding nearly 100% from August lows to ₹12 apiece, as sentiment toward the telecom major improved following better-than-expected September-quarter results. Reports of further tariff hikes next year, along with the Supreme Court allowing the government to consider full relief on Vodafone Idea’s dues, have also supported the ongoing rally. For the September-ending quarter (Q2FY26), the company reported a net loss of ₹5,524.2 crore, lower than the net loss of ₹7,176 crore recorded in the same period last year. Sequentially, the net loss also narrowed from ₹6,608 crore reported in the preceding June quarter .Last week, the company raised 3,300 crore through its subsidiary by issuing secured non-convertible debentures (NCDs), which are expected to support the company’s capital expenditure programme and business growth. The stock is now comfortably trading above its FPO price of ₹11, which it first crossed in mid-November after a gap of over a year.