Vodafone Idea Shares Surge On Media Reports — Details Inside
This rally comes on the back of a recent report that suggests the govt is planning a relief package that would cover the telecom operator's pending statutory dues, amounting to over Rs 83,000 crore.
Shares of Vodafone Idea are gaining in trade on Monday following media reports of a potential relief from the government surrounding its massive adjusted gross revenue (AGR) liabilities.
The stock is currently trading at Rs 11.97, which accounts for gains of up almost 3% against Friday's close of Rs 11.64. The stock has gained almost 50% on a year-to-date basis.
This rally comes on the back of a recent report that suggests the government is planning a relief package that would cover the telecom operator's pending statutory dues, amounting to over Rs 83,000 crore.
The relief also includes a moratorium of four to five years, thus providing immediate liquidity relief to the cash-strapped Vodafone Idea.
As part of the relief package, Vodafone Idea would be asked to clear the arrears in the form of six instalments. But perhaps most importantly, the total liability could be reduced substantially to nearly half, pending a reassessment by a newly-formed committee.
As part of the present schedule, Vi faces a deadline next March to pay the first installment of over Rs 18,000 crore, following the end of a previous moratorium that was granted in 2021.
Unlike the previous relief, however, there will be no interest charged on the new relief and would 'seal' the outstanding amount. This will prevent any kind of future interest accrual.
The relief is reportedly specific to Vi, given its precarious financial position and the government’s 48.99% stake in the entity. The Supreme Court recently allowed the Centre to craft a special package for the telco.
