Vodafone Idea shares tank 15% from 52-week high; govt approves relief package

Shares of Vodafone Idea tanked 15% from day's high even as the Cabinet approved package for the ailing telco. The Cabinet freezed AGR dues at Rs 87,695 crore and the amount is being rescheduled over FY 2031-32 to FY 2040-41. 

However, Vodafone Idea shares slipped 15% to Rs 10.87 from the 52-week high of Rs 12.80 reached during the same session today. The stock slipped 10% against the previous close of Rs 12.07 on BSE. Market cap of the telco stood at Rs 1.17 lakh crore.

The telecom stock fell since the relief fell below expectations. There were expectations that the firm would receive an AGR waiver of at least 50%, which could have positively impacted the long-term prospects of the debt laden telco.  

The telecom stock also saw weak sentiment after the govt's latest move could lead to a delay in potential tariff hikes. Earlier, this month, financial services Motilal Oswal said absence of significant relief on AGR dues for Vodafone Idea could lead to a delay in potential tariff hikes.

According to reports, 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.

"The AGR dues frozen as on 31.12.2025 shall also be reassessed by DoT based on Deduction Verification Guidelines dated 03.02.2020/audit reports. The outcome shall be decided by a committee appointed by the Government and that shall be binding on both parties," said a notification by the government. 

"The above steps will protect the interest of GOI stake of 49% in VIL, enable orderly payment of dues to Government of India by way of Spectrum Auction Charges and AGR Dues, ensure competition in the sector and protect the interest of 20 crore VIL consumers," added the notification.