Vodafone Idea shares soar 10% on AGR waiver hopes!

Vodafone Idea’s stock price surged 10% on Monday, January 20, after reports surfaced that the government may waive AGR dues for telecom companies. The shares opened at ₹10.03, up from ₹9.12, and quickly hit the upper circuit limit of ₹10.03 by 9:35 AM.

Reports from the Economic Times indicated that the Union government was considering a proposal to reduce AGR dues. The government is reportedly exploring a plan to waive 50% of the interest and 100% of the penalties, which constitute a significant portion of the AGR dues imposed on telecom companies like Vodafone Idea and Bharti Airtel. This follows the Supreme Court’s 2019 order, which mandated these payments.

This potential waiver has triggered a positive market response, with Vodafone Idea’s share price reflecting investor optimism about the company’s prospects. The company, which has struggled with mounting AGR dues, would benefit from such a move.