Vodafone Share Price Surges On Confirmation Of AGR Relief — All You Need To Know

Shares of Vodafone Idea are surging in trade on Friday, trading with gains of around 4% after the company confirmed it had received communication from the government surrounding relief linked to AGR dues.

The stock is currently trading at Rs 11.93, accounting for gains of more than 3.5%. However, the stock had reached an intraday high of Rs 12.52 in early trade, and has fallen sharply since, though it is still in the green.

The rally in Vodafone Idea shares comes after the cash-strapped telecom operator has confirmed receiving a relief from the DoT, freezing the AGR dues and outlining a staggered payment structure that extends through 2041.

Under the new terms, the company’s total liability is frozen, preventing the accumulation of further interest on these specific legacy dues, the company confirmed in an exchange filing.

As per the DoT directive, Vodafone Idea will follow a three-tiered repayment schedule designed to ease immediate cash flow pressures.

For the first six years, from March 2026 to March 2031, the company is capped at paying a maximum of Rs 124 crore annually.

This will be followed by annual payments of Rs 100 crore for the subsequent four years, ending in March 2035.

Vodafone Idea has further confirmed that the DoT has mandated the constitution of a committee to reassess the total AGR dues.

The remaining balance, as determined by this reassessment, will be payable in equal annual instalments over six years, from March 2036 to March 2041.

This comes on the back of widespread media reports last week, signalling a potential five-year moratorium on the company's AGR dues, which was thought to be below the street expectations.

Vodafone Idea currently trades with a relative strength index of 59, which suggests neutral market sentiment. The stock has given returns of around 10% in the last one year.