Shares of Vodafone Idea (Vi) saw a huge rise on December 15, where the stock rose more than 3% to reach a fresh 52-week high of ₹12.03. This surge came after media reports said that the government is considering giving an interest-free moratorium of 4–5 years on AGR dues.
Currently, Vi has outstanding AGR dues of more than ₹83,000 crore, of which about ₹18,000 crore has to be paid every year from March 2025.
According to the proposal, after the moratorium the dues can be paid in 6 installments and after reassessment the total payable amount can be significantly reduced.
The Supreme Court has already allowed the government to reassess the dues till FY17, which is being considered a big relief for the company. Vodafone Idea has already warned about funding stress.
Banks are cautious, but increasing stake by the government to about 49% through equity conversion is a positive signal for investors. The stock has gained nearly 97% from its low of ₹6.12 in August.
Now the market is eyeing the final decision of the Union Cabinet, which will decide whether this rally is short-term or the beginning of a long-term turnaround of Vodafone Idea.
