Vodafone Idea Shares Soar 4% to 52-Week High on Expected Govt AGR Relief

• Vodafone Idea (Vi) shares surged 4% to a fresh 52-week high of Rs 12.50 on December 31, driven by anticipation of government relief on AGR dues.
• The Union Cabinet was expected to meet to consider a partial waiver of interest, penalties, and interest on penalties related to Vi's Adjusted Gross Revenue (AGR) dues.
• CLSA estimated that a relief package could provide Vi with $8 billion, as the company faces approximately Rs 83,400 crore in AGR dues.
• Vi has repeatedly warned it cannot survive without funding, and the Supreme Court recently allowed reassessment of its dues up to FY17.
• The government is now the largest shareholder in Vi, holding nearly 49% after converting Rs 36,950 crore of dues into equity.

Why It Matters: Vodafone Idea shares jumped on hopes of significant government relief on its massive AGR dues.