Vodafone Idea's Shares Plunge 10% as Minister Rules Out More Relief on AGR Dues

Shares of debt-ridden Vodafone Idea fell as much as 10% on Tuesday after comments from Minister of State for Communications Chandra S. Pemmasani. The minister ruled out reports suggesting that the government was considering a fresh relief package for the telecom company, which faces massive dues.

“See, we have recently converted a lot of their debt into equity. The government has done whatever we thought we could do, and at this time we don’t have any discussion or plan to change anything beyond what has already been done,” Pemmasani said.

Earlier, it was reported that the Department of Telecommunications had sent a proposal to PMO to extend the moratorium on Vodafone Idea’s ₹83,400 crore adjusted gross revenue (AGR) liabilities, which ends in September.

Speaking to Moneycontrol, Pemmasani clarified that if the government were to take up the matter, it would have to go through the Cabinet, the Prime Minister, the Finance Ministry, and Telecom Minister Jyotiraditya Scindia.

Vodafone Idea is due to start paying ₹18,000 crore annually to the DoT from March 2026 to clear its AGR liabilities, which include spectrum-related dues, interest, penalties and interest on penalties. The company has warned that the issue threatens its ability to operate, as banks remain reluctant to finance its capital expenditure plans.

The government had earlier converted ₹53,083 crore of AGR dues into equity in two tranches, becoming the largest shareholder in the company with a 49% stake.

Former Vi CEO Akshay Moondra had previously told analysts, “In the past, we have always seen that the government has been supportive. You look at the 2019 deferment of spectrum instalments, the 2021 reforms package, the 2023 conversion of government dues to equity, and again in 2025 the conversion of government dues to equity. Generally, these actions have happened closer to the time when it is essentially needed. Our request to the government has been to resolve this earlier than the March deadline so that banks get clarity and we can proceed with funding.”

Vodafone Idea shares dropped as much as 10% in early trade on Tuesday but later recovered some losses to quote at ₹6.80 per share, down 8.11% from the previous close.

Meanwhile, Indus Towers, one of Vodafone Idea’s largest vendors, was down 3.4% at ₹342.75 per share.