 "Vodafone Idea shares tank 15%, hits lower band; check all details here")
Vodafone Idea (Vi) shares slumped 14.9 per cent and hit its lower circuit at ₹10.26 on Wednesday, as heavy selling emerged following reports that the telco may have to clear its AGR dues for FY18 and FY19 over the next five years. Business Standard was unable to independently verify these reports.
At 2:26 PM, Vi was down 9.94 per cent at ₹10.87 on the BSE, even as Sensex traded 0.79 per cent higher at 85,340.74. The stock commands a market capitalisation of ₹1,17,768.88 crore.
Reports indicate that the Union Cabinet has cleared a restructuring and reassessment of Vodafone Idea’s past Adjusted Gross Revenue (AGR) obligations. Under the reported framework, the financially stressed operator has been granted a five-year window (FY26–31) to clear its dues for FY18 and FY19. For the period following FY19, the total liability has been capped at ₹87,695 crore, with repayment scheduled over FY32 to FY41. These capped dues will be reassessed by Govt-appointed committee as per Deduction Verification Policy. Earlier this month, Vi had submitted a proposal to the DoT seeking a recalculation of AGR by correcting arithmetical and duplication errors and asking for a one-time waiver of penalties and interest on penalties, estimated at ₹45,000–50,000 crore. This proposal was broadly consistent with its amended plea before the Supreme Court in September, where the company argued it should not be liable for penalty, interest and interest on penalty on disputed components of AGR and sought a comprehensive review of dues up to FY17 alongside a fresh computation of its obligations.
Available filings show that up to FY17, Vodafone Idea’s AGR liability stood at ₹58,254 crore, including principal of ₹12,797 crore, interest of ₹28,294 crore, penalty of ₹6,012 crore and interest on penalty of ₹11,151 crore. By March 2025, the total liability had risen to ₹83,400 crore, according to the petition filed in October, after factoring in additional licence fee demands of ₹9,450 crore raised by the DoT up to FY19, of which ₹5,606 crore related to periods up to FY17.