Vodafone Idea Shares Surge 10% After Government Signals Support on AGR Dues Amid Supreme Court Hearing

Vodafone Idea's shares surged by 10% on September 19 after the government informed the Supreme Court that it does not oppose the telecom company's plea regarding adjusted gross revenue (AGR) dues. The Centre stated, "Not opposing Vodafone Idea plea, some solution is required, government is also an equity holder. Some solution may be required, subject to Supreme Court approval," as reported by CNBC-TV18.

Vodafone Idea Share Price Today

Vodafone Idea Ltd shares rose by Rs 0.75, or 9.57%, to trade at Rs 8.59 as of 12:33 pm on September 19. The stock opened at Rs 7.91, hitting a high of Rs 8.71 and a low of Rs 7.81 during the session. Its 52-week high stands at Rs 13.02, while the 52-week low is Rs 6.12.

Supreme Court Hearing on Vodafone Idea AGR Dues and Financial Strain

The Supreme Court will review Vodafone Idea's case concerning additional AGR demands from the Department of Telecommunications (DoT) on September 26. Solicitor General Tushar Mehta highlighted that the government has infused 49% equity into Vodafone Idea in light of public interest and suggested the court might consider granting some leniency in the matter.

Vodafone Idea is challenging a fresh demand of Rs 9,450 crore from the DoT, which includes dues up to FY17 and updated licence fees through FY19 for both Idea Cellular and Vodafone Idea Limited. The telecom operator claims certain amounts were duplicated and requires recalculation starting from pre-FY17 periods. These dues fall under a moratorium ending on March 31, 2026.

The company owes approximately Rs 83,400 crore in AGR dues to the government, with annual payments of Rs 18,000 crore beginning in March. Including penalties and interest, overall liabilities reach around Rs 2 lakh crore. This financial burden poses a serious threat to Vodafone Idea's operations and its workforce of over 18,000 employees.

The government's conversion of over Rs 53,000 crore in dues into equity provided temporary relief. However, Vodafone Idea still requires fresh funding to compete effectively with Reliance Jio and Bharti Airtel. The Supreme Court had previously locked Vodafone Idea's AGR dues till FY17 based on DoT calculations, disallowing reassessment. Despite this, DoT now seeks additional payments up to FY19.

In its petition dated September 8, Vodafone Idea requested the Supreme Court to quash DoT's additional demands and order a comprehensive reassessment of all AGR dues for the period. The company emphasised that these demands worsen its financial strain as it attempts to expand its 4G coverage and accelerate 5G rollout to stay competitive.