New Delhi, Wednesday, December 31: Shares of Vodafone Idea witnessed a sharp intraday reversal on Wednesday, plunging nearly 15% from the day’s highs, despite reports of a major relief package approved by the Union Cabinet on the company’s long-pending Adjusted Gross Revenue (AGR) dues.
The stock, which had surged earlier in the session on optimism around an interest-free moratorium on AGR liabilities, slipped sharply in afternoon trade as investors booked profits following the rally.
What triggered the fall despite positive news?
According to market participants, the sharp decline was largely driven by profit booking after Vodafone Idea’s shares rallied strongly on expectations of government support.
Reports from CNBC-Aawaz suggested that the Union Cabinet approved a five-year interest-free moratorium on Vodafone Idea’s AGR dues, with payments rescheduled between FY32 and FY41. While the development was seen as a significant relief, investors remained cautious as the details are yet to be officially notified.
Lingering concerns continue to weigh
Despite the reported relief, concerns remain over Vodafone Idea’s long-term financial sustainability. The telecom operator continues to carry AGR dues of over Rs 83,000 crore, and its ability to raise fresh funding remains uncertain. Market participants also remain wary of potential equity dilution and future payment obligations once the moratorium period ends.
Additionally, the broader market volatility and year-end positioning added pressure, amplifying the intraday sell-off.
Stock movement
Vodafone Idea shares hit an intraday high of around Rs 12.80 before tumbling to near Rs 10.86, marking one of the steepest intraday reversals for the stock in recent weeks.
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