Shares of Vodafone Idea Ltd (Vi) jumped over 9% on Tuesday, October 7, hitting an intraday high of ₹9.20 apiece on the NSE — their six-month peak — amid strong investor buying. The stock closed at ₹9.24, up 9.09%, making it the top gainer on the Nifty Midcap 100 index, which rose 0.53% during the day.
The surge follows renewed optimism surrounding the company’s adjusted gross revenue (AGR) dues case, as the Supreme Court on Monday deferred the hearing on Vi’s plea seeking relief in the long-pending matter. The next hearing is scheduled for October 13, after the Centre requested additional time.
According to reports, Vodafone Idea’s counsel raised no objections to the government’s request for a deferral. The matter was previously postponed on September 26, when Solicitor General Tushar Mehta informed the court that discussions were underway to find an amicable solution.
Government exploring one-time settlement
Bloomberg, citing people familiar with the matter, reported that the government is considering a one-time settlement of Vodafone Idea’s AGR-related dues as part of efforts to strengthen economic ties with the UK. The possible resolution could involve a waiver of interest and penalties, followed by a partial concession on the principal amount.
Vodafone Idea has filed a fresh petition against the Department of Telecommunications (DoT) regarding a ₹5,606 crore demand for the financial year 2016–17. The company has urged the DoT to reconcile and reassess its dues under the Deduction Verification Guidelines of February 2020.
AGR dues and financial stress
The telecom operator’s outstanding AGR dues are estimated at around ₹83,400 crore, with annual payments of ₹18,000 crore due from March 2026. When accounting for interest and penalties, the total liability exceeds ₹2 lakh crore.
In 2020, the Supreme Court granted telecom companies 10 years to clear ₹93,520 crore in AGR-related dues. However, Vodafone Idea and Bharti Airtel later sought corrections in the government’s calculations, citing arithmetic errors and duplicate entries — pleas that were rejected by the court in 2021 and again in a review petition earlier this year.
Relief measures under discussion
As part of potential relief efforts, the DoT is considering extending the moratorium on AGR payments by two additional years, reducing annual payout sizes, and waiving penalties and interest components.
Notably, the Centre now holds nearly 50% equity in Vodafone Idea, making it a direct stakeholder in the company’s revival. During the recent hearing, Solicitor General Mehta told the court, “Some solution may have to be found out, subject to your lordships’ approval. If it can be kept next week, we can think of some solution.”
Stock performance
Investor confidence in Vi has risen sharply in recent weeks. The stock has gained 12% in the past week, 26% in the last month, and 25% over the past three months. Year-to-date, shares of the debt-laden telecom operator are up more than 13%, with the company’s market capitalisation now standing at ₹98,483.82 crore.
