New Delhi, Aug 26 Shares of telecom company Vodafone Idea shares fell over 9 per cent in intra-day trade on Tuesday.
Vodafone Idea shares dipped 9.19 per cent, and have declined more than 16 per cent year-to-date.
The decline came after Minister of State for Communications, Pemmasani Chandra Sekhar, said there are no plans to provide additional relief beyond what has already been offered, according to multiple media reports.
According to the minister, the government had converted a significant portion of the company's debt into equity. The minister said in media reports that the government has taken all feasible measures and that there is no discussion or plan to alter anything beyond what has been done.
Any additional relief for Vodafone Idea (Vi) on its adjusted gross revenue (AGR) dues will be decided collectively by the Union Cabinet, involving the Prime Minister’s Office (PMO), Finance Ministry, Telecom Minister Jyotiraditya Scindia and the Department of Telecommunications (DoT), the minister added.
This also impacted Indus Towers' shares, as investors likely sold off positions after the IT Ministry clarified that the government has no plans currently to offer any further relief for the company's ADR dues.
Indus Tower shares fell 3.58 per cent in early trading on Tuesday to touch Rs 342.05, remaining flat year-to-date. The company recorded over 11 per cent decline in last month.
Last week, media reports indicated that the DoT proposed several relief options to the PMO on the company's ADR dues. These include a fresh two-year moratorium on AGR payments, smaller annual instalments, and waivers on penalties and interest. Asked if the PMO had received a proposal from DoT on extending relief to the operator, the minister replied: “not that we know of.”
Regarding the survival of the company, the minister responded, “That is not up to me to decide… All the companies are continuously reaching out for various reasons, they will also be continuously reaching. But at this time, the discussion — there is nothing that we have planned.”
Vodafone Idea previously urged the DoT to consider the Rs 17,213 crore (principal calculated until FY19) as final and to waive all interest and penalties on AGR dues.
Akshaya Moondra, the CEO of Vodafone Idea informed analysts during an investor call earlier this month that the company is entirely focusing on investing in the business. "Whatever capital is available to the company, the focus is not in trying to do anything with the government holding. The focus will be in using any funding and cash generation for investments, which will give the best returns for the business."
The telecom company is in discussions with banks for funding, and the banks had sought clarity on the AGR issue. Moondra informed investors during the June quarter earnings call that the request to the government is to resolve the matter before the March deadline, allowing banks to gain clarity and proceed with funding.
Vodafone Idea’s losses grew in the June 2025 quarter (Q1 FY26) as the telecom operator reported a net loss of Rs 6,608 crore, compared to Rs 6,432 crore in the same period previous fiscal (Q1 FY25).
However, the company’s revenue from operations rose 5 per cent to Rs 11,023 crore, up from Rs 10,508 crore in the year-ago quarter, according to its stock exchange filing.
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