Vodafone Idea’s stock ticked up a little over 2% after reports that the Indian government could soon ease the heavy interest and penalty charges tied to its Adjusted Gross Revenue (AGR) debt.
Possible Government Relief
Sources say the Union Cabinet will discuss a bailout plan for Vodafone Idea in today’s meeting. The proposal may include cutting the interest and penalties the company owes on its AGR liabilities, which total around ₹2 lakh crore.
Why This Matters for the Company
In October, the Supreme Court allowed the government to reassess Vodafone Idea’s AGR dues, giving the telecom a short breathing room. The firm claims its AGR liability stands at roughly ₹83,400 crore, with an annual payment of about ₹18,000 crore due from March 2026 for six years. Any reduction in interest or penalties could be a crucial lifeline.
Stock Moves and Technical View
After the news, the shares rose to ₹12.32, touching a 52‑week high. Over the past year the stock has climbed about 52%.
Analyst Anshul Jain notes that the stock is forming a tight “flag” pattern just below the key resistance level of ₹12.40. Sellers are being absorbed, but a firm breakout above ₹12.40 on strong volume would be needed to confirm a fresh rally, potentially targeting the next supply zone around ₹15.05.
Investor Takeaway
- Watch for the Cabinet’s decision – a reduction in AGR penalties could boost the stock.
- Technicals suggest a breakout is possible, but confirmation is still needed.
- Consider keeping risk limited below the flag base until clear upward momentum appears.
Remember, this is perspective, not a prediction. Do your own research and consult a certified advisor before making any investment decisions.