Vodafone Idea : Shares Soar to ₹12 Following Telecom Minister’s Signal of Progress on AGR Dues Discussions
Vodafone Idea: Following Telecom Minister Jyotiraditya Scindia’s announcement that discussions on the company’s adjusted gross revenue (AGR) obligations are still ongoing, Vodafone Idea (Vi) shares increased to around ₹12. Investor mood was improved by the announcement since Vi’s ongoing financial strain may be lessened by any possible respite or clarification on AGR liabilities. According to Scindid, the CEO of the firm should be setting corporate strategy, but the discussions are still in progress.”I don’t believe you (the government) can counsel them (the corporation) just because you are a minority shareholder. The CEO should be in charge of establishing the company’s strategy. In an interview with businessline, Scindia said, “It is for that company to define.”
Naturally, the government wants to see the business thrive, provide excellent customer service, and expand. The Minister said, “But that responsibility must lie with the management, and not with the Department of Telecom.” Vodafone-Idea, which the government owns 49% of, is still having a hard time keeping customers and is suffering significant losses. The Supreme Court’s recent decision to let the government to reevaluate Vodafore–Idea’s AGR dues has been a lifesaver for the financially distressed corporation.In the meanwhile, the business said on Friday that it has strengthened 4G capacity and started the next stage of its fifth-generation (5G) network deployment in more cities. 29 cities already provide the company’s 5G services.
Following better-than-expected September-quarter earnings, sentiment toward the telecom giant improved, and the company’s shares have bounced back over 100% from August lows to ₹12 each in recent months. The continuing protest has also been bolstered by reports of more rate increases for the next year and the Supreme Court’s decision to let the government to explore full relief on Vodafone Idea’s debts. The firm posted a net loss of ₹5,524.2 crore for the September-ending quarter (Q2FY26), which was less than the ₹7,176 crore net loss for the same time previous year. From the ₹6,608 crore recorded in the previous June quarter, the net loss also decreased sequentially.By selling secured non-convertible debentures (NCDs) via its subsidiary last week, the firm collected 3,300 crore, which is anticipated to assist its capital investment plans and commercial expansion. After more than a year, the stock initially exceeded its FPO price of ₹11 in mid-November, and it is now trading comfortably above that level.