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Vodafone Idea stocks extend rally on AGR waiver buzz; gain 30% in 1 week

The government is considering a proposal to waive 50% of interest and 100% of penalties and interest on penalties that make up a bulk of the AGR dues levied on telcos

Tough future call: What happens if VIL isn't out of the woods in 4 years?

In one week, the Vi stock has surged 30 per cent. (File Image)

Deepak Korgaonkar Mumbai

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Shares of Vodafone Idea (Vi) on Monday hit an intraday high of Rs 10.48 apiece on the BSE on reports that the government was working on a proposal to waive a substantial portion of adjusted gross revenue (AGR) dues for telecom companies. 
The stock ended the trading session at Rs 9.95, gaining 9.10 per cent.   
However, later in the day, the telecom major said it did not receive any communication from the government yet about the waiver.   
In one week, the Vi stock has surged 30 per cent. It is quoting at its highest level since October 4, 2024. 
  Media reports indicated that the Centre may announce the AGR waiver in the upcoming Union Budget. 
 
Meanwhile, shares of Kalyan Jewellers India jumped as much as 9.4 per cent on Monday after Motilal Oswal Asset Management Company denied allegations over its investments in the jewellery retailer. Shares of Kalyan Jewellers ended 5.9 per cent higher at Rs 531. In recent weeks, social media posts have alleged that officials at the AMC may have been bribed to make substantial investments in Kalyan Jewellers. 
  MOAMC termed the allegations as "baseless, malicious, and defamatory.” Shares of Kalyan Jewellers ended 5.9 per cent higher at Rs 531. In the past two weeks, shares of Kalyan had dropped over 35 per cent. 
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Under the proposed relief, the AGR dues of VIL may come down by over Rs 52,000 crore; for Bharti Airtel, by nearly Rs 38,000 crore; and for Tata Teleservices, by approximately Rs 14,000 crore. "We await a final announcement by the government, if it fructifies," brokerage firm ICICI Securities said in a note regarding the measures.
 
Shares of Tata Teleservices (Maharashtra) rallied 13 per cent to Rs 80.05 on the back of a two-fold jump in average trading volumes. A combined 107 million equity shares of the company have changed hands on the NSE and BSE till 09:30 AM. In one week, the market price of the Tata Group company has soared 21 per cent. Shares of Bharti Airtel, meanwhile, are trading 0.5 per cent lower at Rs 1,619 on the BSE. In comparison, the BSE Sensex was almost flat at around 76,600.
 
Meanwhile, as of September 30, 2024 (Q2FY25), VIL’s debt from banks stood at Rs 3,270 crore versus Rs 7,830 crore at Q2FY24, a reduction of Rs 4,580 crore during the last one year. The company's deferred spectrum obligations stood at Rs 1,419.4 billion and the AGR liability stood at Rs 703.2 billion, totaling to Rs 22.6 billion as of September 30, 2024, the company's management had said in the Q2FY25 earnings call.
 
"The AGR curative petition dismissal was unexpected, but the company continues to be engaged with the government to find a solution which can work for all stakeholders. This year is an important one for VIL as the company is taking critical steps in its transformation journey," they stated.
 

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First Published: Jan 20 2025 | 10:10 AM IST

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