Relief or Rumor! Vodafone Idea shares surge despite no official word on Rs 84,000 crore AGR dues
"We have not received any communication from the Government in relation to the above-reported matter. As and when there is any development which requires disclosure, we will do the needful."
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Shares of Vodafone Idea surged on Tuesday, buoyed by media reports suggesting potential relief on its massive adjusted gross revenue (AGR) dues. However, in a regulatory filing, the financially stretched telecom operator clarified that no formal communication has been received from the government on the matter.
"We have not received any communication from the Government in relation to the above-reported matter. As and when there is any development which requires disclosure, we will do the needful," the company said in a regulatory filing.
Reports circulating in media suggest that the government may be considering a 20-year repayment extension for Vodafone Idea’s AGR dues. There’s also speculation that compound interest on dues may be converted to simple interest, significantly reducing the burden. The company could be allowed to make token annual payments of Rs 1,000–1,500 crore until a final resolution is achieved.
If true, these measures could provide a much-needed breather for the telco, which has been grappling with mounting debt and intense market competition.
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As of March 2025, Vodafone Idea’s AGR liability stands at Rs 83,400 crore, with about Rs 18,000 crore due by FY26. Its cash reserves were just Rs 9,930 crore, raising serious questions about repayment capacity and long-term viability without external support or structural relief.
Earlier this year, in a significant move, the government converted Rs 36,950 crore of dues into equity, making it the company’s largest shareholder with a nearly 49% stake. That intervention was seen as a vote of confidence but not a long-term fix.
