Vodafone Idea Ltd’s stock jumped nearly 10% in Monday’s trading session after the Supreme Court of India granted the telecom operator permission to reassess its Adjusted Gross Revenue (AGR) dues up to the financial year 2016–17.
The ruling provides significant relief to the debt-laden company, which has long struggled under the weight of massive AGR liabilities.
According to the Economic Times, the apex court’s decision enables Vodafone Idea to conduct a full reassessment of its dues, potentially lowering the total amount owed to the government.
This development comes as a major turning point for the company, which has been battling financial headwinds, mounting debt, and intense competition from rival telecom giants Reliance Jio and Bharti Airtel.
Following the news, Vodafone Idea’s share price surged to ₹14.40 on the Bombay Stock Exchange (BSE), marking a 10% increase from the previous close. Trading volumes spiked sharply as investor sentiment turned optimistic about the company’s improved financial outlook.
The reassessment is expected to give Vodafone Idea room to strengthen its balance sheet, improve liquidity, and support its ongoing 5G rollout and network expansion initiatives.
Analysts suggest that a reduction in AGR liabilities could boost investor confidence and make it easier for the company to attract new funding.
Vodafone Idea has been struggling to raise capital to fund its network upgrades and stay competitive in India’s rapidly evolving telecom market.
The relief from the court is being viewed as a potential lifeline that could help stabilize operations and improve long-term viability.
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