Vodafone Idea shares end 2 pc lower register 9 pc intra-day surge

New Delhi, Jan 9 (PTI) Shares of Vodafone Idea closed 2 per cent lower on Friday after surging nearly 9 per cent in early trade amid a weak trend in the broader equity market.
    The stock jumped 8.78 per cent to Rs 12.51 in morning trade on the BSE. But, later it pared all the gains and ended at Rs 11.27, down 2 per cent.
    On the NSE, the stock declined 2 per cent to end at Rs 11.26. In early trade, it had surged 8.86 per cent to Rs 12.52.
    Offering a lifeline to struggling debt-laden telecom operator Vodafone Idea, the government has capped annual payouts to clear past dues at Rs 124 crore over the next six years, easing near-term cash flows, the company said on Friday.
    Between March 2032 and March 2035, the yearly outgo will be trimmed to Rs 100 crore, Vodafone Idea said in a stock exchange filing, citing a communication received from the Department of Telecommunications (DoT).
    It went on to state that the remaining adjusted gross revenue (AGR) dues shall have to be paid in equal instalments annually over six years starting March 2036.
    The payment schedule details sent Vodafone Idea shares higher by nearly 9 per cent in morning trade, but the stock pared most of its gain by afternoon.
    In the equity market, the 30-share BSE Sensex tumbled 604.72 points or 0.72 per cent to sink below the 84,000-level and settle at 83,576.24. The 50-share NSE Nifty dropped 193.55 points or 0.75 per cent to 25,683.30.
    AGR dues refer to payments owed by telecom companies to the government based on adjusted gross revenue (AGR). It is the revenue on which telecom operators must pay licence fees and spectrum usage charges. It is defined to include all revenues, even non-telecom income (like interest, rent, asset sales).
    Vodafone Idea has been battling a prolonged financial crisis, driven by intense price competition, high debt, and massive AGR liabilities that arose from a change in the definition of AGR. The company has struggled with persistent losses, a shrinking subscriber base, and limited ability to invest in network expansion, even as rivals accelerated 4G and 5G rollouts.
    Repeated rounds of government relief and equity conversion of dues have kept the company afloat, but its long-term viability continues to hinge on sustained policy support, fresh capital infusion, and a turnaround in operating performance.

(This story has not been edited by THE WEEK and is auto-generated from PTI)