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Vodafone Idea shares came under heavy selling pressure on Tuesday after the government ruled out extending any relief package
Vodafone Idea Shares
Vodafone Idea Shares Fall: Vodafone Idea shares came under heavy selling pressure on Tuesday after the government ruled out extending any relief package to the struggling telecom operator. The stock fell over 6 per cent in intraday trade on the BSE, touching a low of Rs 6.9 per share, its sharpest single-day decline in weeks. At 10:05 AM, Vodafone Idea was down 9 per cent.
The statement comes amid ongoing concerns about the company’s financial health and its ability to manage its obligations.
The latest development has heightened concerns over the company’s already precarious financial position. Vodafone Idea continues to grapple with high debt levels, stiff competition from rivals Reliance Jio and Bharti Airtel, and outstanding dues linked to adjusted gross revenue (AGR). The government’s stance signals that the telco will have to rely on internal measures, fundraising, or market partnerships to stay afloat, rather than expect a bailout.
The Department of Telecommunications (DoT) is not considering any fresh concessions for Vodafone Idea beyond the measures already extended, according to Minister of State for Communications Chandra Sekhar Pemmasani. He highlighted that the government has already converted a significant portion of the telco’s dues into equity and there are no proposals under discussion for further relief.
The government became Vodafone Idea’s single-largest shareholder after converting Rs 36,950 crore of spectrum dues into equity in March. A similar step was taken in 2023, when it acquired around a 33% stake against dues worth Rs 16,000 crore. Despite these measures, Vodafone Idea has admitted in court filings that survival without government support remains uncertain.
As of June 2025, the company’s adjusted gross revenue (AGR) liability stood at about Rs 75,000 crore. Repayments are scheduled to begin in six instalments once the moratorium ends on March 31, 2026, raising concerns over cash flow and fundraising.
Separately, Pemmasani confirmed that spectrum pricing discussions for satellite communication (satcom) services are ongoing, with firms such as Starlink and Eutelsat OneWeb in the fray. He also clarified that operators will be required to host Indian user data domestically and cannot use foreign gateways.
Shares of Vodafone Idea closed 4.7% higher at Rs 7.40 on the BSE on Monday.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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