Vodafone Idea Shares In Focus After Key Clarification Over AGR Dues Relief — Details Inside
After market close on Wednesday, Vodafone Idea clarified that the company has not received any communication from the government surrounding the supposed AGR relief.
Shares of Vodafone Idea will be in focus heading into Thursday's trade following a couple of important developments after market close on Wednesday.
The shares of Vi had corrected as much as 11.53% on Wednesday following widespread media reports of the Cabinet giving a five-year interest-free moratorium on its AGR-linked dues of over Rs 87,000 crore.
The supposed Cabinet relief was way below expectations, as the Street had originally expected an AGR waiver of at least 50%. As a result, the stock faced immense pressure in trade, falling as much as 15%.
Key Developments In Vodafone Idea
After market close on Wednesday, Vodafone Idea clarified that the company has not received any communication from the government surrounding the supposed AGR relief that was widely reported in the media.
However, NDTV Profit can confirm the Cabinet has approved a relief for Vodafone Idea, freezing AGR payment dues until FY32, meaning Vodafone Idea won't be subjected to any interest on its AGR dues for the next five years.
Menawhilel, another key development surrounding Vodafone Idea overnight saw the company receive Rs 5,836 crore from promoter Vodafone PLC.
The British telecom company confirmed it will release Rs 2,307 crore to Vodafone Idea over the next 12 months.
Vodafone PLC has also set aside its 328 crore shares held in Vodafone Idea for the benefit of the latter.
Vodafone Idea will have the right to instruct Vodafone Plc to sell these shares in one or more tranches, and any cash proceeds from stake sale being transferred to Vodafone Idea.
As of today, the market value of these shares is close to Rs 3,529 crore.
Out of 22 analysts tracking the company, five maintain a 'buy' rating on VIL stock, seven recommend a 'hold,' and ten suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target is Rs 8.96.
