Vodafone Idea share price jumps over 8% on reports of govt weighing AGR relief to aid UK ties

Vodafone Idea share price jumped over 8% on Tuesday after reports said the Central government may offer a one-time settlement for the telecom company’s long-pending dues worth billions of dollars. Vodafone Idea shares rallied as much as 8.61% to ₹9.20 apiece on the BSE.

According to a Bloomberg report, the government is considering waiving off interest and penalties and giving partial relief on the main amount of the nearly ₹2 lakh crore ($22.5 billion) demand. The move is reportedly aimed at resolving the issue and strengthening economic ties with the UK.

The timing of the proposal is also seen as strategic — it comes soon after India and the UK signed a trade pact and just before British Prime Minister Keir Starmer’s visit to India this week. With ties between India and the US under pressure and relations with China slowly improving, settling the Vodafone Idea case could help India position the UK as a reliable economic partner.

Government officials are said to be preparing the framework for the settlement while ensuring it doesn’t lead to legal disputes from other telecom companies that also owe dues, the Bloomberg report added.

The government, which became a 49% shareholder in Vodafone Idea this year through a debt-to-equity swap, has already indicated the need to find a resolution. A government lawyer told the Supreme Court last month that “some solution may be required” since public funds are now involved in the company.

The dispute relates to the calculation of adjusted gross revenue (AGR) — a part of telecom companies’ earnings paid to the government as license and spectrum fees. Telecom operators, including Vodafone Idea, have long contested the government’s calculation method.

The Supreme Court on Monday deferred the hearing on Vodafone Idea’s petition challenging the AGR dues calculation to October 13.

Vodafone Idea Share Price Performance

Vodafone Idea share price has rallied 26% in one month and 25% in three months. The telecom stock has risen 24% in six months and has gained 14% on a year-to-date (YTD) basis. However, Vodafone Idea shares have remained flat in one year and have declined 17% in two years.

At 2:25 PM, Vodafone Idea share price was trading 7.32% higher at ₹9.09 apiece on the BSE.

(With inputs from Bloomberg)

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