Shares of Vodafone Idea (Vi) witnessed a tremendous rise on December 15 and the stock rose by more than 3% to reach a fresh 52-week high of ₹12.03. The surge came on the news of a possible 4–5 year interest-free moratorium on AGR dues by the government. Vi has AGR dues of more than ₹83,000 crore, the payment of which is to start from March 2025.

Under the proposal, dues can be paid in six installments and reassessment can reduce the burden. Supreme Court has allowed re-examination of dues up to FY17. Due to equity conversion, the government’s stake has increased to around 49%. The stock has risen nearly 97% from its August low of ₹6.12. Now the eye is on the Cabinet’s decision.

Shares of Vodafone Idea (Vi) saw a huge rise on December 15, where the stock rose more than 3% to reach a fresh 52-week high of ₹12.03. This surge came after media reports said that the government is considering giving an interest-free moratorium of 4–5 years on AGR dues.

Currently, Vi has outstanding AGR dues of more than ₹83,000 crore, of which about ₹18,000 crore has to be paid every year from March 2025.

According to the proposal, after the moratorium the dues can be paid in 6 installments and after reassessment the total payable amount can be significantly reduced.

The Supreme Court has already allowed the government to reassess the dues till FY17, which is being considered a big relief for the company. Vodafone Idea has already warned about funding stress.

Banks are cautious, but increasing stake by the government to about 49% through equity conversion is a positive signal for investors. The stock has gained nearly 97% from its low of ₹6.12 in August.

Now the market is eyeing the final decision of the Union Cabinet, which will decide whether this rally is short-term or the beginning of a long-term turnaround of Vodafone Idea.