Vi shares surge 4% as AGR dues likely to halve
What's the story
Vodafone Idea's shares surged by nearly 4% on Friday, after a report suggested that the company's AGR (Adjusted Gross Revenue) dues could be significantly reduced. The potential reduction will happen after a reassessment by the Department of Telecommunications (DoT) committee. The telco's shares rose to ₹12.05 each, marking gains for the second consecutive session.
Potential reduction
DoT reassessment could halve Vodafone Idea's AGR dues
According to officials quoted by the Economic Times, Vodafone Idea has been given a 10-year window to pay over 95% of its AGR dues. The telco's frozen dues amounting to ₹87,695 crore could be slashed by over 50% after a DoT reassessment in the next three-four months. Whatever the final amount is, it will have to be paid between FY36 and FY41.
Strategic move
Government's AGR relief package and potential exit
The AGR relief package approved by the Union Cabinet could be paving the way for the government's exit from Vodafone Idea, The Indian Express reported. A private sector investor is also being considered as a potential replacement, government sources told the publication. This comes after the Cabinet's decision to freeze hefty AGR dues for five years, giving visibility over future liabilities—a condition set by private sector investors.