Vodafone Idea Shares Soar as Government Mulls Interest-Free Moratorium on AGR Dues

Vodafone Idea Shares Jump to 52-Week High

Vodafone Idea (Vi) shares rose 3.2% to a new 52-week high of Rs 12.02 on the BSE, driven by the government's plan to extend an interest-free moratorium on the company's Adjusted Gross Revenue (AGR) dues. This move aims to ease financial pressure on the struggling telecom company, providing immediate relief and improving its near-term liquidity position.

Potential Reduction in AGR Dues

The government may reassess the outstanding liabilities, potentially reducing the final payable amount by nearly half. Once the moratorium ends, Vodafone Idea would be required to pay the arrears in six instalments, at a significantly lower amount.

Relief Package Details

• The committee, headed by a secretary-level official, will determine the final payment terms, subject to Cabinet approval.
• The new relief package will replace the earlier interest-accruing plan with an interest-free structure, capping the total liability and preventing further interest buildup.
• Vodafone Idea is currently scheduled to pay over Rs 18,000 crore in March 2026 as the first instalment of AGR dues, based on an earlier moratorium granted in 2021.

Impact on Vodafone Idea and Investors

The proposed relief package is exclusive to Vi and will not apply to other operators like Bharti Airtel. A successful implementation of the relief package may enable the company to proceed with its planned capital raise of Rs 25,000 crore. Additionally, Tillman Global Holdings, a New York-based private equity firm, is in talks to invest $4–6 billion (Rs 35,000–Rs 52,800 crore) in Vodafone Idea, contingent on the relief package being finalized.

The Aditya Birla Group and Vodafone Group Plc currently hold 9.50% and 16.07%, respectively, in the telecom firm. The government, with a 48.99% stake, may see its holding diluted if a fresh equity issue is made, providing further financial room for the company.