Vodafone Idea shares see sharp fall from highs; Here's the AGR dues repayment timeline

Shares of Vodafone Idea Ltd., the debt-laden telecom service provider, surged over 8% in early trading on Friday, January 9, after it said in an exchange filing that it has received a communication from the Department of Telecom, with regards to the Adjusted Gross Revenue dues. However, the stock has cooled off from the opening highs.

The filing stated that the AGR dues of the company for the period from financial year 2006-2007 to financial year 2018-2019 will be frozen and paid in the following manner:

First, A maximum of ₹124 crore to be paid annually over the next six years, that is between March 2026 to March 2031

Second, ₹100 crore to be paid annually over four years, that is between March 2032 to March 2035

and the remaining AGR dues have to be paid in equal installments annually over six years, that is between March 2036 to March 2041.

The dues are inclusive of principal, interest, penalty and the interest on penalty.

The filing further stated that the committee has been constituted by the Department of Telecom to reassess the AGR dues, whose decision shall be final. Thereafter, the reassessed amount is to be repaid between March 2036 to March 2041 in equal installments.

On December 31, the government had announced that Vodafone Idea's AGR dues will be frozen at ₹97,695 crore, offering a 10-year payment window after a five-year moratorium.

The government has a 49% stake in Vodafone Idea and is its largest public shareholder. The official cabinet document had stated back then that these steps will enable orderly payment of dues to the government and also protect the interest of 20 crore customers of the company.

Shares of Vodafone Idea are trading 3% higher in early trading on Friday at ₹11.85.