Vodafone Idea Limited (VIL), the third-largest telecom operator in India, has issued clarification to the stock exhanges on Monday over the adjusted gross revenue (AGR) matter. The stock exchange had sought clarification from Vi for a report from NDTV Profit with the headline, "Government Rejects Vodafone Idea AGR Relief Plea Ahead Of Supreme Court Hearing."
To this Vodafone Idea said, "we wish to inform you that the Hon’ble Supreme Court has today refused to admit the Writ Petition filed by the Company, seeking appropriate relief in the AGR Matter."
Read More - Is Vodafone Idea in Big Trouble?
Vodafone Idea AGR Payout is an Issue
Vodafone Idea's AGR payout will be approximately Rs 18,000 crore from the end of FY26. This is double the operating cash generation of Rs 9,000 crore by the telco. Even if Vi is able to raise funds, those funds are earmarked for capex. The telco is using its revenues to pay off dues. Thus, this puts Vi is in a tight situation, and it will be crucial for the telco to get further support from the government in the matter.
Read More - Vodafone Idea Plea on AGR Dues Rejected by Supreme Court
There's no more room for debt to equity conversion left as the government already owns 49% of the company. The promoters are also not likely to infuse further capital into the company.
