Aniket PujariVodafone Idea share price rallied over 4% in early trade on Wednesday despite a sell-off in the broader Indian stock market today. Extending gains for the second straight session, the telecom stock rose as much as 4.24% to ₹10.57 apiece on the BSE.
The rally in Vodafone Idea share price today comes as the Union Government is seen moving closer to finalising its stance on the telco’s relief proposal related to adjusted gross revenue (AGR) dues.
Union Telecom Minister Jyotiraditya Scindia said the Centre is awaiting a formal request from the telecom company before moving ahead with any relief measures.
In an interview with CNBC-TV18, Scindia said the ministry was examining the legal boundaries set by the Supreme Court in its verdict last month. “Judgment needs to be evaluated from a point of view of what can be done and what cannot be done. We cannot cross the border of the SC judgment,” he told the news channel.
Last month, the Supreme Court allowed the government to comprehensively reassess and reconcile all of Vodafone Idea’s AGR dues, including interest and penalties, up to FY17.
In September, the company sought a waiver of penalty and interest on an AGR demand of ₹9,450 crore raised by the DoT, arguing that a major portion relates to the pre-FY17 period already settled by the apex court in 2020.
Vodafone Idea’s overall AGR dues stand at ₹83,400 crore, with annual payments of ₹18,000 crore due from March. Including penalties and interest, its total liabilities to the government are estimated at about ₹2 lakh crore. The telco has previously said its current cash flows are insufficient to meet these obligations.
Vodafone Idea Share Price History
Vodafone Idea share price has rallied 9% in one month and has jumped by 58% in three months. The telecom stock has rallied 30% on a year-to-date (YTD) basis, while it has gained 26% in one year. Vodafone Idea share price has risen 25% in the past three years.
At 10:25 AM, Vodafone Idea share price was trading 2.76% higher at ₹10.42 apiece on the BSE.
