Vodafone Idea Shares Crash 20% Despite AGR Relief: Why Investors Remain Wary

• Vodafone Idea shares plummeted up to 20% on Wednesday, falling below its FPO price of ₹11, despite major AGR relief news.
• Union Cabinet approved a five-year moratorium on AGR payments, freezing ₹87,695 crore dues to be paid between FY32 and FY41.
• The relief aims to ease cash pressure, but investors are concerned about Vi's long-term financial health, funding, and cash flow.
• Vi still needs to pay AGR dues for FY18 and FY19 in the next five years, adding to existing heavy debt.
• Government became a major shareholder (49%) by converting ₹36,950 crore dues into equity in March 2025.

Why It Matters: AGR relief failed to reassure investors, leading to a 20% stock crash due to long-term financial concerns.