Vodafone Idea has cited the earlier AGR judgment in its plea and is seeking a waiver of over ₹30,000 crore in dues, specifically the penalty and interest on the penalty component of the AGR levy.
The company argues that the government is “handicapped” in granting further relief due to constraints imposed by the AGR judgment.
It further claims that the government is now effectively a “partner” in the company, holding a 49% equity stake after converting AGR and spectrum dues into equity.
Citing pain in the telecom sector, the telco claims that the sector will collapse without additional government support.
The company has requested an urgent hearing on the matter, scheduled for May 19.
Based on the latest shareholding pattern shared by Vodafone Idea, Foreign Portfolio Investors had a 6.56% stake in the company, but none had a stake above 1%, for their names to feature in the shareholding pattern.
The latest shareholding also shows the government holding 49% stake in the telecom operator, after having converted its spectrum liabilities into equity. The company has over 59 lakh small shareholders, or those with an authorised share capital of up to ₹2 lakh.
The government’s move is expected to provide huge relief to Vodafone Idea’s cash flow in the next three years and help it complete its bank debt raise, global brokerage firm Citi had said in an earlier note. Vodafone Idea has raised over ₹20,000 crore through its largest Follow-on Public Offer (FPO) last year and infusion of funds by promoters.
Shares of Vodafone Idea are currently trading 3.30% higher at Rs 7.21. The stock is down 35% from its FPO price of ₹11. Even the conversion of the government’s dues into equity, post which, it now owns 49% stake in Vodafone Idea, was done at a price of ₹10 per share.
First Published: May 15, 2025 1:48 PM IST
