- Airtel and Vodafone Idea shares have spiked after the government announced a deadline for opting for the adjusted gross revenue (AGR) dues moratorium.
Vodafone Idea share price has decreased by nearly 8% this month.- Airtel’s share price reached a new high for the month today.
The telecom relief package gives Airtel and Vodafone Idea a time-freeze of four years from making payments towards their respective adjusted gross revenue (AGR) dues. The government has announced that telcos have been given a deadline of October 29 to decide if they wish to opt for the payment moratorium.
Update: As per a report, Vodafone Idea has informed the government that it will accept the four-year moratorium on the
Additionally, the telcos have been given 90 days to respond whether they wish to convert the accrued interest into equity.
Airtel is currently trading around ₹708.7 and reached this month’s high of ₹713 on October 20. Vodafone Idea on the other hand, increased by over 4% and is currently trading at ₹10.53, as of 11:15 a.m., on Wednesday.
Airtel will benefit from the four-year moratorium on AGR dues, freeing up its cash reserves to invest in the upcoming 5G spectrum auctions.
The cash-strapped Vodafone Idea will also benefit from the
Here’s how much Vodafone Idea and Airtel owe the government in the form of AGR dues:
Source: AGR dues case in the Supreme Court
SEE ALSO:
Airtel, Vodafone Idea and Reliance Jio have till October 29 to opt for the AGR dues moratorium
Indian government dials M for moratorium – Airtel, Vodafone Idea get a four-year relief on AGR dues
Airtel, Vodafone Idea shares jump after government proposes to withdraw ₹13,000 crore demand for spectrum usage charges