Shares of Vodafone Idea Limited jumped 8% in early morning trades on Friday, January 9, after the debt-laden telecom operator received significant relief from the Department of Telecommunications (DoT) in the long-pending Adjusted Gross Revenue (AGR) case. As of 9:22 AM, the shares were trading 8.09% higher at Rs 12.43.
In an exchange filing, Vodafone Idea said it has received official communication from the DoT outlining a revised repayment structure for AGR dues related to the period from FY 2006–07 to FY 2018–19. The clarity on future liabilities boosted investor sentiment, leading to a sharp rally in the stock during early trade.
As per the communication, the company’s AGR dues have been frozen and will be repaid in a phased manner over the coming years. Vodafone Idea will pay a maximum of ₹124 crore annually for six years between March 2026 and March 2031. This will be followed by annual payments of ₹100 crore over four years from March 2032 to March 2035. The remaining AGR amount will then be paid in equal annual instalments over six years between March 2036 and March 2041.
The company clarified that the dues include principal, interest, penalty, and interest on penalty, providing complete visibility on the total obligation.
This development follows the government’s announcement on December 31, under which Vodafone Idea’s AGR dues were frozen at ₹97,695 crore. The relief package allows a 10-year payment window after a five-year moratorium, significantly easing near-term cash flow pressure on the telecom operator.