Vodafone Idea shares witnessed a sharp rally on today October 15th as the telecom shares jumped to 4% to 8.72 rupees against the previous close of 8.36. Yesterday the stock slipped 3.65% to an intraday low of ₹8.71 apiece as the Supreme Court again deferred the AGR case hearing.The Supreme Court will hear a plea from a debt-laden company seeking to quash the additional adjusted gross revenue (AGR) demands on October 27, after Diwali. The court also directed the government to take a clear position in the case.
Vodafone Idea has filed the fresh plea against the Department of Telecommunications' (DoT) fresh demand of ₹5,606 crore relating to the financial year 2016-17. Earlier, the Centre had said efforts were on to arrive at a resolution with the company.Vodafone Idea owes nearly ₹83,400 crore in AGR dues, and the annual payments currently stand at ₹18,000 crore, scheduled from March 2026. When combined with interest and penalties, Vodafone Idea’s dues stand at more than ₹2 lakh crore.As per the report, one of the relief options is an additional two-year pause on paying the statutory dues under moratorium at present.
The DoT has proposed to give the company extra time to pay its dues, along with smaller annual payouts and a waiver on penalties and interest penalties on AGR payment, the report said. For a month’s time, the telecom firm’s shares have gained 10%. In the last six months, the stock has climbed more than 22%. Since the beginning of the year, it has, however, advanced nearly 11.6%. The company’s market capitalisation stands at ₹96,641.99 crore.
Meanwhile, Bloomberg reported, citing sources, on October 6 that India is considering a one-time settlement of its longstanding demand for AGR fees from Vodafone Group Plc’s beleaguered local venture, as the government seeks to strengthen ties with the UK. Resolution in the nearly Rs 2 lakh crore financial dispute may come through a waiver of interest and penalties, followed by a concession on the principal, said the people, the report said. Officials are drafting the framework and also weighing steps to ensure any deal doesn’t spark legal challenges from other telecom operators that owe dues, Bloomberg reported.