Vodafone Idea Share Price: Vodafone Idea just made a comeback call for the ages.
On Monday, November 3, the stock rocketed 14%, marking its biggest single-day surge since April 2024, after the Supreme Court delivered a dramatic twist in the long-running AGR dues saga. For years, the telecom giant has been stuck in a financial chokehold, but the Court’s latest clarification may have just handed it a lifeline.
In a crucial turn, the Supreme Court said the government is free to consider relief on both additional and reassessed AGR dues, a move that could rewrite Vodafone Idea’s future. The news sent Dalal Street buzzing as investors rushed to grab a slice of the action. Suddenly, Vodafone Idea wasn’t the struggling player everyone had written off; it was the comeback story lighting up the ticker.
After all, who doesn’t love a good redemption arc?
Supreme Court Throws Vodafone Idea A Lifeline- Opens the Door for Full AGR Reassessment
In a courtroom twist that could change the future of the waning telecom powerhouse in India, the Supreme Court on Monday gave Vodafone Idea (Vi) a much-needed lifeline. Deviating from its previous position, the apex court altered its order of October 27 and permitted the Centre to examine and reconsider the entire adjusted gross revenue (AGR) dues of the company, not merely the additional ₹9,450 crore demand, of which ₹5,606 crore pertains to FY2016 -17.
The move represents a huge milestone in the turnaround of the financially battered telco, which has long been burdened by decades-old AGR debt and a lack of investor confidence. The fact that the government has now been given the authority to conduct a detailed reconciliation of dues up to FY17 has opened the door to the possibility of relief, and perhaps even survival.
The markets responded swiftly. Vodafone Idea’s stock jumped nearly 10 percent intraday, hitting the upper price band of ₹9.6, its biggest rally in months. The telco’s market capitalisation surged to ₹1.04 trillion as investors placed big bets on a potential turnaround story. For a company in which the government itself holds nearly 49 percent, the Supreme Court’s nod was far from a routine order, it was a bolt of hope.
A detailed directive on whether the relief will extend to other telcos is expected on Tuesday. Until then, Vodafone Idea has found its first genuine lifeline in years.
On October 27, a Division Bench of Chief Justice of India Justice B. R. Gavai and Justice K. Vinod Chandran had said the central government was free to reconsider Vi’s plea to set aside the additional demand of ₹9,450 crore raised by the Department of Telecommunications (DoT).
Stock Market Reaction: Supreme Boost! Vodafone Idea Shares Skyrockets 14% As Court Clears The Air On AGR Dues
- Massive Surge: Vodafone Idea shares jumped as much as 14% on Monday, November 3, marking the biggest single-day gain since April 2024 after the Supreme Court’s key clarification on AGR dues.
- Court Relief: The Supreme Court confirmed that Vodafone Idea’s plea for relief includes both additional AGR dues and a reassessment of all pending dues.
- Government Empowered: The apex court clarified that the government is free to consider relief on both counts- a move that could reshape Vi’s financial trajectory.
- Earlier Uncertainty: On October 27, confusion lingered over whether the order covered only the ₹9,500 crore additional dues or the entire ₹80,000 crore in pending liabilities.
- Court’s Observation: The bench noted the Centre’s 49% stake in Vi and the potential impact on 20 crore consumers, justifying the need for flexibility in reconsideration.
- Stock Performance: Post the ruling, Vodafone Idea shares traded 13.1% higher at ₹9.87, signaling renewed investor confidence.
- Fresh Rally Today: In early trade today, Vodafone Idea surged another 10% to ₹9.54 after the Supreme Court’s go-ahead for the government to review the full ₹80,000 crore AGR dues.
- Sector Ripple Effect: Indus Towers rose 5.8%, buoyed by optimism around Vi’s potential revival.
- Investor Buzz: Reports suggest TGH eyes a $4 – 6 billion investment, amplifying hopes of a telecom turnaround story in the making.
The AGR Dues Dispute Over Vodafone Idea
You will recall that the AGR saga in Vodafone Idea has been a roller coaster if you have been following the telecom drama. It started back in 2020, when the Supreme Court ruled with the Department of Telecommunications (DoT) and capped the dues of Vi at ₹58,254 crore, which have since gone out of proportion to ₹83,400 crore.
Coming To today: Vi is once more before the court, appealing against an additional ₹9,450 crore, of which ₹5,606 crore is associated with 2016-17 alone. And the true kicker comes in the form of the telco staring at annual payments of ₹18,000 crore beginning March 2026. The Supreme Court has never given Vi a chance to redeem itself like it may do now, with these mammoth figures on the line, as it just gave a nod to allow the government to revisit the entire dues.
Is this the beginning of the turnaround of the most war-torn telecom player in India, or a new twist to its protracted legal controversy?
Ripple Effect Across the Telecom Sector After Vodafone Idea Case
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Bharti Airtel: Shares gained around 1%, buoyed by the positive sentiment following the Supreme Court clarification for Vodafone Idea.
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Bharti Hexacom: Recovered from early losses to trade in the green, mirroring sector-wide optimism.
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Indus Towers: Emerged as a biggest potential beneficiary, with shares surging 5%, as relief for Vodafone Idea could improve its payment prospects.
(With Inputs From Releases)
Also Read: NEW LIFELINE: Vodafone Idea Share Price Jumps As Tillman Global Mulls $6 Billion Lifeline
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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