Vodafone Idea Stock Price up by More than 6% Today After Government Hints at Providing Relief on its AGR dues

Vodafone Idea shares witnessed a sharp jump of over 6% on June 24, following reports that the Indian government is exploring options to provide financial relief to the debt-laden telecom operator, which owes ₹84,000 crore in regulatory dues.

Stock Performance: Upbeat Morning Trade

The stock climbed to an intraday high of ₹7.00, gaining over 5.34% at 12:00 PM IST, trading from the previous close of ₹6.64. Trading volumes were significantly elevated, with over 46 crore shares exchanged during the session. Despite today’s rally, Vodafone Idea shares have remained under pressure this year. Vodafone Idea shares have declined by 60% over the last year, 13.8% year-to-date, and 0.43% in the last month.

Centre Weighs Rescue Measures Amid Insolvency Concerns

According to reports, the central government, now holding a 48.99% equity stake in Vodafone Idea after a recent debt-equity conversion, is assessing multiple strategies to prevent the company from heading toward bankruptcy.

The options under discussion reportedly include:

• Extending the AGR payment tenure to 20 years, compared to the current six-year schedule.
• Replacing compound interest (currently 29–30%) with simple interest of 8–10%, which could save the telco over ₹16,000 crore if applied prospectively.
• Allowing an annual token payment of ₹1,000–₹1,500 crore until a final verdict is reached on the AGR case.

These measures, if approved, would significantly ease the cash flow burden on the telecom operator, which has warned that it cannot sustain operations beyond FY26 without government intervention.

Government Cautions and Spectrum Dues Conversion

Earlier this year, the government had converted its spectrum dues into equity, boosting its shareholding in Vodafone Idea. However, it has also indicated no plans to convert additional dues into equity and warned that the company could face a ₹18,064 crore liability by FY27, jeopardizing its financial viability.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations