Vodafone Idea shares rose over 5% after a sharp fall a day earlier
Vodafone Group to release ₹2,307 crore in phases and earmark shares for Vi’s benefit
Government deferred AGR repayments worth nearly ₹87,700 crore to FY32–FY41
Vodafone Idea shares made a sharp comeback on January 1. The stock price rose over 5% on Thursday after it tumbled as much as 15% the previous day. The telco’s shares were trading at ₹11.38 at 10.36 am, up 5.76% today.
The recovery followed regulatory disclosures showing the telco will receive around ₹5,836 crore from the Vodafone Group under a re-settlement of a liability claim, helping reverse sentiment after a volatile previous day.
1 December 2025
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According to the revised agreement, Vodafone Group promoters will release ₹2,307 crore over the next 12 months for the telecom company. It has also set aside its 328 crore shares held in Vi for Vi’s benefit.
On Wednesday, the government approved a five-year moratorium on the telecom operator’s AGR liabilities amounting to around ₹87,695 crore.
The Cabinet has agreed to freeze the AGR dues, with repayments deferred to the period between FY32 and FY41. In addition, the company will settle its outstanding AGR liabilities for FY18 and FY19 over the next five years.
Under the earlier repayment schedule, the Aditya Birla Group-backed telco was required to begin paying its dues from March 2026 in 10 equal instalments.
Reports indicated that a Department of Telecommunications (DoT) committee may be set up to provide additional relief by reassessing and recalculating AGR dues, including a possible review of interest and penalty components.
The Cabinet's decision comes after the Supreme Court in October allowed the government to reassess all dues owed by the operator, including interest and penalties, up to FY17.
The company had repeatedly said that without relief, it may not be able to continue operations as it owes the government close to ₹2 lakh crore, including AGR dues, spectrum payments and interest.
Since 2023, the Union Government has provided three relief packages, including the latest decision. In 2023, the government acquired a 33% stake in the company by converting statutory dues of over ₹16,000 crore into equity.
Earlier this year, the government became Vi’s largest shareholder in March after converting ₹36,950 crore of dues into equity, raising its holding to nearly 49%.
The move is intended to keep the telecom market competitive under the government’s '2+1' strategy. However, analysts say that without an external investor, sustaining the company will remain difficult.
