Shares of Vodafone Idea Ltd. and Indus Towers Ltd. surged after the govenrment lifted the AGR overhang on the debt-laden telecom operator.
On Friday, Vodafone Idea’s share price rose 8.78% to an intraday high of ₹12.51 on the BSE while those of Indus Towers gained 5.58% to ₹441.70, even as the benchmark Sensex traded 0.10% lower.
Vodafone Idea laid out a repayment schedule for its adjusted gross revenue dues, capping annual payments at $13.79 million for the next six years, easing near-term cash flow pressure without reducing headline liabilities.
On 31 December the government had approved a partial moratorium on the telecoms company’s dues, freezing $9.76 billion in payments and deferring repayments to the 2030s. At the time, Vodafone Idea had said it had not received any communication about the measure.
The telecom operator, in which the Indian government holds a 49% stake, said in a statement on Friday that after the initial six years, the annual payout will be capped at 1 billion rupees for the following four years through March 2035, with the remaining balance to be paid in equal annual installments over the subsequent six years.
