Vodafone Idea shares zoom 10% after SC clarifies on AGR dues; details here

Vodafone Idea Shares: The Supreme Court, on Monday, clarified that Vodafone Idea asked for relief on both the additional and reassessment of all pending AGR dues

Shares of Vodafone Idea zoomed nearly 10 per cent on Monday after India's top court allowed the government to consider all adjusted gross revenue (AGR) dues for reconsideration. 

 

The telecom major's stock rose as much as 9.9 per cent during the day to hit an upper price band of ₹9.6 per share. This is compared to a 0.25 per cent advance in Nifty 50 as of 2:28 PM. The counter has risen 21 per cent this year, compared to a 9 per cent advance in the benchmark Nifty 50. Vi market capitalisation rose to ₹1.04 trillion. 

 

The Supreme Court, on Monday, clarified that Vodafone Idea asked for relief on both the additional and reassessment of all pending AGR dues. The Supreme Court amended its previous order in the Vodafone Idea AGR case, Bloomberg reported, allowing the government to reconcile all dues.  

 

This comes after uncertainties arose following the previous order, which clarified that the apex court’s directive to the government to reconsider the AGR demands applies only to Vodafone Idea’s additional dues raised for the period up to the financial year 2016-17.

 

Analysts at Motilal Oswal said that the SC's earlier verdict to allow the government to re-examine the AGR issue is a "positive step and expect the GoI to revisit the AGR issue and announce relief measures soon." However, the broker also noted that this potential relief is already factored into Vi's stock price.  

 

The potential AGR relief underscores the Government's commitment to maintaining a 3+1 market structure in the Indian telecom sector and could also enable Vodafone Idea’s long-pending debt raise, Motilal Oswal said. "This, in turn, would support the continuation of Vodafone Idea’s ₹50,000-55,000 crore capital expenditure plans and improve sentiment for Indus Towers."

TGH In Talks To Invest Up To $6 Billion In Vi

Shares also rallied after reports emerged that Private equity firm Tillman Global Holdings (TGH) is in discussions to invest $4-6 billion (₹35,000–52,800 crore) in Vi and assume operational control. The Economic Times reported that the investment will only proceed if the government offers a comprehensive support package addressing all of Vi’s liabilities, including AGR dues and spectrum payments. 

 

Stock exchanges, meanwhile, have sought clarification on the same, and the reply is awaited.