Vodafone Idea Shares Hit 10% Upper Circuit After SC Modifies AGR Ruling

Shares of Vodafone Idea Ltd hit the 10% upper circuit on Monday as the Supreme Court modified the ruling on Adjusted Gross Revenue (AGR) dues and the reassessment of all dues. The Supreme Court clarified that the government is free to consider relief on both additional and reassessed AGR dues. At 14:35 IST on Monday, shares of the telecom company traded 10% higher at ₹9.6 per share.

The latest ruling came after Vodafone Idea sought a review of point number six in its petition, which talked about additional AGR demand up to the financial year 2016–17. The central government has also supported the demand. The telecom companies challenged the Department of Telecommunications’ (DoT) demand for an additional ₹9,450 crore in AGR dues, seeking a waiver on interest and penalties. The operator owes around ₹83,400 crore in AGR dues and has annual payments of about ₹18,000 crore beginning next March. The company’s total liabilities to the government are projected at nearly ₹2 trillion.

Court Ruling Which Sent Shares Downhill

In an order dated October 27, while allowing the government to re-examine the AGR matter, the court restricted the relief to only what VI sought in the particular case. The telecom company approached the Supreme Court in September, claiming the DoT was demanding additional dues. These liabilities, linked to the company’s spectrum purchases, arose due to a long-standing dispute over what constitutes AGR. As of March 31, 2025, Vodafone Idea had payment obligations to the government totaling ₹1,93,970.2 crore, which included deferred spectrum dues of ₹1,18,025 crore and AGR liabilities of ₹75,945.2 crore, as per its FY25 annual report.

US PE Firm Tillman Global Holdings to Invest in VI

Earlier in the day, media reports stated that US private equity firm Tillman Global Holdings (TGH) is in negotiations to invest $4–6 billion in VI and take operational control. The Economic Times reported that the investment will not take place if the government provides a comprehensive package covering spectrum payments. “If the deal happens, TGH will take promoter status and assume control from existing promoters Aditya Birla Group and the UK’s Vodafone,” ET reported, citing sources. According to the report, the investment by TGH would result in the dilution of existing promoter stakes, with the government likely maintaining a holding below 49% through the conversion of dues over time into equity. At present, the government owns 48.99%, while Aditya Birla Group and Vodafone Plc hold 9.50% and 16.07%, respectively.