Vodafone Idea Shares Hit 10% Upper Circuit Amid AGR Waiver Buzz

The telecom giant’s stock surged following reports of a potential government proposal to waive adjusted gross revenue dues, offering a boost to Vodafone Idea’s recovery prospects.

January 20, 2025: Vodafone Idea’s share price soared 10% on January 20, reaching ₹10.03, amid reports of a potential government proposal to waive adjusted gross revenue (AGR) dues for telecom companies. The stock, which opened at ₹10.03 on the BSE, hit its upper circuit shortly after trading began, marking a significant gain from its previous close of ₹9.12.

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According to an Economic Times report, the Union government is evaluating a proposal to waive 50% of interest, along with 100% of penalties and interest on penalties, for AGR dues levied on telecom operators like Vodafone Idea and Bharti Airtel. These charges stem from a 2019 Supreme Court order that left the telecom sector grappling with massive financial liabilities.

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AGR refers to the revenue generated by telecom operators from their primary services. Recent data from the Telecom Regulatory Authority of India (TRAI) shows telecom operators’ gross revenue rose by 10.5% year-on-year to ₹91,426 crore during the July-September 2024 quarter, driven by tariff hikes. Vodafone Idea’s own AGR climbed 4.39% to ₹7,836.98 crore during the same period, up from ₹7,507.65 crore in the corresponding quarter of the previous year.

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Share Price Momentum

Vodafone Idea shares have been on an upward trend for five consecutive sessions since January 14.

In addition to the AGR waiver buzz, the company saw significant equity investments through preferential issues. Omega Telecom Holdings Private Limited, which previously held 0.40% of Vodafone Idea’s equity share capital, acquired an additional 1.08 billion equity shares. Similarly, Usha Martin Telematics Limited increased its stake by securing over 608 million equity shares through the same mechanism.

These developments, coupled with the potential AGR waiver, have sparked investor optimism about the company’s recovery and long-term sustainability.

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Vodafone Idea, AGR waiver, telecom sector, stock market, government policy, telecom revenue, Vodafone Idea shares, adjusted gross revenue, preferential issue, BSE trading