Vodafone Concept shares crash 15% regardless of Cupboard freeze on Rs 87,695 crore AGR dues
Nevertheless, AGR dues pertaining to FY18 and FY19 will probably be payable by Vodafone Concept from FY26 to FY31, with no change within the quantities, sources instructed PTI. Additional, the corporate’s AGR dues have been frozen as of December 31 and will probably be reassessed by the Division of Telecommunications, the report added.
The PTI report added that the Cupboard’s choice is aimed toward defending the federal government’s 49% stake within the firm, enabling an orderly fee of Vodafone Concept’s dues and guaranteeing sustained competitors within the telecom sector.
The federal government’s transfer to think about a partial waiver of curiosity, penalties, and curiosity on penalties bodes effectively for Vodafone Concept, as these collectively kind a good portion of the corporate’s complete AGR liabilities. Reviews had earlier urged that the Centre can be evaluating the choice of providing the telecom operator an interest-free moratorium of 4 to 5 years on statutory dues exceeding Rs 83,000 crore.
The event comes at a important time for Vodafone Concept, which is underneath strain to fulfill a March deadline to repay greater than Rs 18,000 crore.
This quantity is a part of the AGR moratorium granted to telecom operators in 2021. As per the present schedule, the corporate faces annual AGR-related funds of practically Rs 18,000 crore beginning March 2025.
The uncertainty round these funds has weighed on Vodafone Concept’s means to strengthen its stability sheet and fund operations. The Cupboard’s choice might additionally assist the corporate transfer ahead with its deliberate Rs 25,000 crore capital infusion, seen as essential for enhancing its monetary place.In October, the federal government knowledgeable the courtroom that it was keen to look at the problems raised by Vodafone Concept and rethink the matter, topic to the courtroom’s permission. The Supreme Court docket subsequently mentioned it noticed no obstacle to the Centre revisiting the difficulty and taking an acceptable choice, citing the federal government’s fairness stake within the firm and its base of over 20 crore clients.
Regardless of as we speak’s sharp fall, Vodafone Concept shares have risen 61% over the previous six months.
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