Vodafone Idea seen getting decade-long relief; AGR dues of ₹87,000 crore may halve after review

Core Viewpoint - Vodafone Idea (Vi) has received a significant relief package from the government, allowing it a 10-year period to pay over 95% of its adjusted gross revenue (AGR) dues, which are currently frozen at ₹87,695 crore as of December 31 [1][7]. Group 1: Financial Obligations - A committee will be formed within three to four months to reassess the frozen AGR dues, which are expected to decrease substantially [1]. - Vi will pay approximately ₹114 crore annually for six years until FY31 and ₹100 crore annually for another four years until FY35, indicating that there is no moratorium on the repayment schedule [3][7]. - The company must also pay AGR dues for FY18 and FY19, estimated between ₹700-800 crore, in annual installments of ₹114 crore by FY31 [4][7]. Group 2: Stock Market Reaction - Vi's shares closed at ₹11.62, reflecting an increase of about 8% on the BSE, following clarity on the relief package [5][7]. - The stock had previously hit a lower circuit due to initial reports about the relief package, which did not include any waiver of dues [5][7]. Group 3: Future Financial Outlook - By FY36, the majority of Vi's spectrum auction dues will have been paid, positioning the company in a better financial situation [6][7]. - Overall, Vi is obligated to pay spectrum dues until FY44, indicating a long-term financial commitment [6][7].