NEW DELHI: Vodafone Idea has approached the Supreme Court seeking relief from a portion of its adjusted gross revenue (AGR) dues, triggering a nearly 4 per cent rise in its stock on Thursday.
The telco is seeking a waiver of over Rs30,000 crore, specifically the penalty and interest on penalty components of the AGR levy.
The company, in its fresh plea, argued that the government is constrained from offering further relief due to the apex court’s earlier AGR judgment.
However, it added that the situation has since changed, with the government now effectively a “partner” in the company, holding a 49 per cent equity stake following the conversion of dues into shares.
Vodafone Idea has requested an urgent hearing on the matter, which is scheduled for May 19.
The company said the telecom sector remains under stress and warned that it could collapse without additional support.
A favourable ruling could offer significant relief to Vodafone Idea’s cash flows over the next three years and help it close pending debt arrangements, according to analysts.
Vodafone Idea recently raised over Rs20,000 crore through a follow-on public offer and promoter fund infusion. However, its stock remains about 35 per cent below the FPO issue price of Rs11.
On Thursday, shares rose 3.81 per cent to a high of ₹7.25 before settling at Rs7.21.
As per the latest shareholding data, the government holds 49 per cent in Vodafone Idea. Foreign portfolio investors (FPIs) collectively hold 6.56 per cent, with no single investor holding more than 1 per cent. The company also has over 59 lakh small shareholders.
