Vodafone Idea shares recover from AGR relief shock, rise 17%; key details

Vodafone Idea shares have surged over 17% from the day the government approved relief package for the ailing telco. The stock, which slipped to Rs 10.26 on December 31, hit a high of Rs 12.04 in the current trading session. Vodafone Idea stock had surged to a 52-week high of Rs 12.80 on December 31 in anticipation of a waiver in Adjusted Gross Revenue (AGR) dues from the government. However, the stock tanked 15% in the same session in absence of any waiver in the relief package. 

Since then, the stock has seen a relief rally from that level and surged to a high of Rs 12.04 in the current session. The rebound in the Vodafone Idea stock has also been supported by the development that the telco will receive around Rs 5,836 crore from Vodafone Group as part of the resettlement of a liability claim pact between the two companies. 

Under this, Vodafone Group promoters will release Rs 2,307 crore over the next 12 months for Vodafone Idea as per the terms agreed in the amendment agreement. Reacting to this development the stock surged 11% intraday to Rs 11.92 in the previous session (January 1).

Meanwhile, in the current session, Vodafone Idea shares surged 3.61% intra day to Rs 12.04 against the previous close of Rs 11.62. Market cap of the firm surged to 1.26 lakh crore. 

The stock is trading near the 52 week high of Rs 12.80 reached on December 31 before the AGR relief pacakge was announced. The announcement was made during market hours on Wednesday. 

The Cabinet freezed AGR dues at Rs 87,695 crore and the amount would be rescheduled over FY 2031-32 to FY 2040-41. Department of Telecommunications will reassess the frozen dues based on audit reports, while AGR dues related to FY18 and FY19 will be payable by Vodafone Idea over the next five years.