Vodafone Idea, Tata Tele Shares Rally Following Reports on Positive Support from Govt

Vi's annual payouts towards AGR dues would come down significantly if the government decides to waive 50% interest and remove the penalties and interest on them. 

Highlights

  • Vodafone Idea (Vi) and Tata Teleservices saw their shares jump more than 10% on Monday morning.
  • The reason for this rally in shares are reports saying that the government is considering a major relief for the telcos related to the AGR (adjusted gross revenue) dues.
  • Vi's share price is currently Rs 9.98, up 9.55%, while Tata Teleservices is trading at Rs 81.90, up 15.29%.

Follow Us

vodafone idea tata tele shares rally following

Vodafone Idea (Vi) and Tata Teleservices saw their shares jump more than 10% on Monday morning. The reason for this rally in shares are reports saying that the government is considering a major relief for the telcos related to the AGR (adjusted gross revenue) dues. As per an ET report, the government is considering letting go of up to 50% interest on the AGR dues, and up to 100% of the penalties and the interest on penalties. The AGR dues are the biggest burden on Vodafone Idea (Vi). Due to that, creditors and lenders have been cautious of exposing themselves further to Vi.




Vi's share price is currently Rs 9.98, up 9.55%, while Tata Teleservices is trading at Rs 81.90, up 15.29%.

Read More - BSNL’s 180 Days Validity Plan Doesn’t Even Cost Rs 1000

If this support thing turns out to be the reality, then it would become signficantly easier for Vi to raise funds through debt. The telco has already raised money through equity, and its three-year plan also includes a major chunk of money that would come from debt. Tata Teleservices also owes money to the government in the form of AGR dues, and interest on it.

Vi's annual payouts towards AGR dues would come down significantly if the government decides to waive 50% interest and remove the penalties and interest on them.

Reported By

Tanuja is a passionate technology and telecom buff who has been following the telecom industry for several years now.

Recent Comments

WIN :

Fingers crossed. Hopefully they would also take care of tech centres especially Embassy Tech Village and others aswell :D

Vodafone Idea has Addressed Network Congestion Problems: CEO

Almighty sama :

Okay this ia good but speeds should be minimum 150mbps or stleast 100

Vodafone Idea's Two Netflix Plans Available Today

aishu :

I appreciate you sharing this blog post. Thanks Again. Cool.

Vodafone Idea’s Financial Viability in Doubt as Govt Rules Out…

rahul_yadav :

BSNL 2G Towers was below 1 Lakh around 75-80K and they already upgraded it 4G and Installing some more as…

BSNL to Deploy Additional 1 Lakh 4G Towers; Public Invited…

renjith :

naturally like your web site however you need to take a look at the spelling on several of your posts.…

Vodafone Idea’s Financial Viability in Doubt as Govt Rules Out…

Load More
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments