Vodafone Shares Soar Over 9%, Airtel In Green After Government Considers AGR Waiver

Vodafone Idea, or VI, has not had the past few years, as the third largest telecom company in India has seen its status crumble amid a decreasing ARPU and an exodus of the company's subscriber base.

Government Plans AGR Waiver

This has also led to a steep decline in the value of the company shares.

These past few days have been relatively different for the company. In fact, on Monday, January 20, the shares of the company jumped by over 9 per cent.

This comes to pass after reports emerged that the central government is mulling over a slashing 50 per cent of interest and 100 per cent of penalties and interest on penalties that amount to the adjusted gross revenue (AGR). This AGR came in a hammer on company's prospects after the Supreme Court's ruling in 2019.

The AGR Fireball

By permitting a four-year deferral on the payment of AGR and other statutory dues, the government provided the sector with much-needed respite in September 2021. September 2025 marks the conclusion of the moratorium.

This has come as a good news for the company. And it is not just Vodafone, that is having a green patch at the equity markets. The country's second-largest telecom service provider, Airtel or Bharti Airtel also saw their shares increase in value on the intraday trade on Monday, January 20.

Unlike these two telecom giants, the biggest telecom company in India, Reliance Jio, does not have to pay these AGRs.

Vodafone Idea Ltd

When we take a closer look at the performance of the VI shares, the stock price zoomed by a mammoth 9.77 per cent or Rs 0.89. This took the overall value of the company shares to Rs 10.00 per piece.

It is to be noted that the Indian government is a part owner in Vodafone Idea.

Bharti Airtel Ltd

The Airtel shares after starting high, dipped significantly, only to return to some form.

At the time of writing, the shares of the Sunil Mittal-led company rose 0.37 by Rs 5.95, taking the overall value of the company shares to Rs 1,633.45 per piece.