Airtel, Vodafone Idea shares spike after government announces deadline for AGR dues moratorium
- Airtel and Vodafone Idea shares have spiked after the government announced a deadline for opting for the adjusted gross revenue (AGR) dues moratorium.
- Vodafone Idea share price has decreased by nearly 8% this month.
- Airtel’s share price reached a new high for the month today.
AdvertisementAirtel and Vodafone Idea share prices spiked on Wednesday after the government announced a deadline for opting for the four-year adjusted gross revenue (AGR) dues moratorium.
The telecom relief package gives Airtel and Vodafone Idea a time-freeze of four years from making payments towards their respective adjusted gross revenue (AGR) dues. The government has announced that telcos have been given a deadline of October 29 to decide if they wish to opt for the payment moratorium.
Update: As per a report, Vodafone Idea has informed the government that it will accept the four-year moratorium on the AGR dues.
Additionally, the telcos have been given 90 days to respond whether they wish to convert the accrued interest into equity.
Airtel is currently trading around ₹708.7 and reached this month’s high of ₹713 on October 20. Vodafone Idea on the other hand, increased by over 4% and is currently trading at ₹10.53, as of 11:15 a.m., on Wednesday.
Airtel will benefit from the four-year moratorium on AGR dues, freeing up its cash reserves to invest in the upcoming 5G spectrum auctions.
The cash-strapped Vodafone Idea will also benefit from the AGR dues moratorium.
Here’s how much Vodafone Idea and Airtel owe the government in the form of AGR dues:
|Company||Total AGR demand (in crore)||AGR dues paid (in crore)||Balance AGR dues (in crore)|
Source: AGR dues case in the Supreme Court
Airtel, Vodafone Idea and Reliance Jio have till October 29 to opt for the AGR dues moratorium
Indian government dials M for moratorium – Airtel, Vodafone Idea get a four-year relief on AGR dues
Airtel, Vodafone Idea shares jump after government proposes to withdraw ₹13,000 crore demand for spectrum usage charges
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