Shares of debt-laden telecom service provider Vodafone Idea’s share price surged as much as 9% on Friday’s early trades after the company said that it has received a communication from the  Department of Telecom, regarding its Adjusted Gross Revenue (AGR) dues.

Factor Analysis of Vodafone Idea

Vodafone Idea Ltd.IDEA₹11.44 -0.52%

Vodafone Idea’s AGR dues for the period from financial year 2006-2007 to financial year 2018-2019 will be frozen and paid in the following manner, as per the exchange filing:

  • A maximum of ₹124 crore to be paid annually over the next six years (March 2026- March 2031)
  • ₹100 crore to be paid annually over four years (March 2032 to March 2035)
  • The remaining AGR dues have to be paid in equal installments annually over six years (March 2036 to March 2041)

These dues are inclusive of principal, interest, penalty and the interest on penalty.

On December 31, the government had announced that the company’s AGR dues will be frozen at ₹97,695 crore, offering a 10-year payment window after a five-year moratorium. 

The government has a 49% stake in the company and has made it clear on multiple instances that it does not want a duopoly in the Indian telecom market, although, it has no intentions to increase its stake beyond the current 49%.

At 01:00 PM, Vodafone Idea’s shares were trading flat at ₹11.50 apiece.