Vodafone Idea saw a strong rally of 11% in its stock today after a big update in the AGR dues case. The Supreme Court has postponed the hearing of the plea filed by Vodafone Idea to September 26. Investors cheered when the government said it does not oppose the company’s request for relief, though it also noted that a long-term solution is required since the Centre itself holds a major equity stake.
Vodafone Idea Share Price News
Shares of Vodafone Idea surged 12% on Friday and closed at ₹8.76 apiece. In the past one month, the stock has already climbed over 33%. This rally came after the government clarified in court that it is not against Vodafone Idea’s request regarding the pending AGR dues dispute.
The decision gave positive vibes to the market, as investors gained confidence that the company may get more breathing space to resolve its huge financial troubles.
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AGR Dues Dispute Explained
The company’s legal battle is linked to an additional AGR demand of ₹9,450 crore raised by the Department of Telecommunications (DoT). Vodafone Idea argued that this demand goes beyond the Supreme Court’s 2019 ruling on AGR liabilities.
- Out of ₹9,450 crore, about ₹2,774 crore relates to FY18-19 dues of Vodafone Idea after the merger.
- Around ₹5,675 crore is linked to Vodafone Group’s pre-merger liabilities.
The company stated that some figures were duplicated and asked for a fresh reconciliation of all dues, starting before FY17.
On the other hand, DoT defended its stance, saying the amounts were not a reassessment but a gap found during the completion of financial accounts.
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Government’s Position on Vodafone Idea
The government currently owns around 49% stake in the telecom operator after converting nearly ₹53,000 crore debt into equity during a rescue package in 2021.
However, Minister of State for Communications Chandra Sekhar Pemmasani made it clear that no more relief packages will be given. He said the government has already provided support, and it is now up to Vodafone Idea’s management to handle its operations. Telecom minister Jyotiraditya Scindia also confirmed there are no plans to convert Vodafone Idea into a PSU.
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What It Means for Investors
The latest updates have boosted market sentiment around Vodafone Idea. Investors are hopeful that some resolution in the AGR dues matter could improve the company’s survival chances in the highly competitive telecom sector.
- Positive trigger: Govt not opposing Vodafone Idea’s latest plea.
- Investor confidence rising: Stock gained over 33% in a month.
- Uncertainty remains: AGR dues decision still pending in Supreme Court.
With the next hearing scheduled for September 26, the focus will remain on how the court rules and whether Vodafone Idea can finally move towards stability in its financial journey.
Disclaimer: All the information provided in this article is for educational purposes only. DateUpdateGo always advises seeking guidance from a certified financial advisor before making any investment-related decisions.
