Supreme Court's Relief to Vodafone Idea (Vi)

The Supreme Court has modified its prior order, permitting the Indian government to implement a special relief package for Vodafone Idea (Vi) concerning its entire Adjusted Gross Revenue (AGR) liabilities, which amount to over ₹83,400 crore.

Key Developments

• The apex court had initially limited relief to an additional demand of ₹9,450 crore by the Department of Telecommunications (DoT) until FY19.
• Vi approached the court for clarification, leading to a revision of the directive by Chief Justice BR Gavai.
• The revised order allows reassessment and reconciliation of all AGR dues up to FY 2016-17, including interest and penalties.

Implications for Vodafone Idea

• Following this modification, Vi’s stock surged by 9.28%, closing at ₹9.54 on the BSE.
• This relief is exclusive to Vi, with Bharti Airtel not receiving similar benefits.
• Vi aims to secure fresh capital amounting to ₹25,000 crore, with potential equity issues reducing the government's current 49% stake.
• The government currently owns a 48.99% stake in Vi, following a conversion of past dues into equity.
• Potential investment discussions are underway with Tillman Global Holdings for a $4-6 billion investment.