Vodafone idea
On Tuesday, the shares of Vodafone Idea saw an increase of more than 8%. It is reported that the central government may offer an option of one-time settlement to settle the company’s long pending arrears. After this, the shares of the company jumped 8.61% to Rs 9.20 per share.
According to Bloomberg report, the government is considering waiving interest and fine on the outstanding of about Rs 2 lakh crore (about $ 22.5 billion) and giving partial relief on the original amount. It is being told that this step can be taken with the aim of strengthening economic relations with Britain.
Decision may be made before British PM’s visit to India
This decision may come at a time when India and Britain have recently signed a trade agreement, and this week British Prime Minister Kir Starmer is going to visit India. In such a situation, resolving the Vodafone Idea dispute can prove to be a strategic move for India to introduce Britain as a trusted economic partner. The upperberg report also said that government officials are preparing a framework for this settlement that does not create legal disputes of other telecom companies.
It is worth noting that this year the government has taken a 49% stake in Vodafone Idea, which was acquired by converting the debt into equity. Last month, the government’s lawyer in the Supreme Court had said that now when the public is engaged in the money company, a solution is needed.
What is the case of Vodafone-Idea
This entire controversy is about the calculation of adjustable gross revenue (AGR). Telecom companies, including Vodafone Idea, have been objecting to the government’s calculation system for a long time. The Supreme Court on Monday postponed the hearing on the petition of Vodafone Idea till 13 October.
Vodafone idea share performance
- The stock has climbed 26% in the last 1 month.
- 25% in 3 months, and 24% in 6 months.
- 14% gained from the beginning of the year.
- However, in 1 year the stock has been almost stable and 17% has fallen in 2 years.
- By 2:25 pm on Tuesday afternoon, Vodafone Idea’s stock was trading at Rs 9.09 with a gain of 7.32%.