CHENNAI: Vodafone Idea shares soared on Tuesday, November 4, locking in a 10 percent upper circuit after the Supreme Court allowed the government to review the company’s entire adjusted gross revenue (AGR) liabilities. The decision marked a significant legal relief for the debt-laden telecom operator and sparked strong buying interest on hopes of reduced dues and improved prospects for financial recovery.
The shares rose sharply in early morning trade to touch Rs 9.75 apiece before easing to Rs 9.54 by 11:30 AM.
According to the court’s clarification, the Department of Telecommunications (DoT) can reassess the full spectrum of Vodafone Idea’s AGR dues, not just the additional demand raised for a specific financial year. The ruling corrects an earlier error that limited the scope of review and potentially opens the door for the government to reconsider the overall liability, which had previously stood at over Rs 83,000 crore.
The move was interpreted by investors as a major step toward possible relief and restructuring of dues that have long burdened the company. Analysts said that a fresh review could lead to partial write-offs or staggered payments, improving Vodafone Idea’s balance sheet and cash flow outlook.
Adding to the optimism were reports suggesting that US-based private equity firm Tillman Global Holdings (TGH) is exploring a potential investment of up to $6 billion in Vodafone Idea. Though the company clarified that no formal proposal is currently under board consideration, the speculation fueled hopes of fresh capital infusion to strengthen its operations and expand network investments.
The dual boost from the Supreme Court ruling and investment talks triggered a surge in trading volumes, reflecting a sharp shift in market sentiment from near-collapse fears to turnaround expectations. Technical analysts noted bullish signals in the stock, with key moving averages indicating a possible trend reversal.
However, analysts also cautioned that the relief remains subject to the government’s review outcome. Vodafone Idea continues to face several challenges, including high debt levels, intense competition from Reliance Jio and Bharti Airtel, and low average revenue per user (ARPU). The company’s financial viability will depend on its ability to raise funds, retain subscribers, and improve operational efficiency.
For investors, the rally offers a ray of hope but also highlights the stock’s speculative nature. While the court’s order has reduced the immediate risk of insolvency, the long-term turnaround hinges on sustained regulatory and financial support.
Market participants will now watch for further announcements from the government or the company regarding AGR reassessment, potential capital partnerships, and future fund-raising plans. The outcome of these developments will determine whether Vodafone Idea’s recent rally marks the beginning of a recovery or just a temporary relief rally.
