Vodafone Idea Share Price Slips 2% as Telco Resumes AGR Relief Talks with Govt

Vodafone Idea share price fell over 2% on June 3 after the company said it is in active talks with the central government to seek relief from its Adjusted Gross Revenue (AGR) dues, which amount to nearly ₹30,000 crore. However, by 9:20 AM, the stock bounced back to an intraday high of ₹7.02.

Funding Tied to AGR Resolution

CEO Akshaya Moondra stated that the company is also in discussions with banks for debt financing to support long-term growth. But banks want clarity on Vodafone Idea’s dues before lending. He stressed that AGR relief is a policy matter and the government should be free to make decisions beyond court limitations.

Key Challenges: ARPU and Pricing

Moondra also pointed out India’s low Average Revenue Per User (ARPU) and unsustainable data prices. He suggested that heavy data users should pay more, as current returns don’t meet the cost of capital for telecom operators.

Financial Struggles and Supreme Court Setback

The update comes after the Supreme Court denied the company’s plea for relief, adding pressure to an already struggling operator. Vodafone Idea lost 6.47 lakh subscribers in April, with its total user base falling to 20.47 crore.

Looking Ahead: Urgent Support Needed

Vodafone Idea had earlier warned the government that without timely support, it may not survive beyond FY26. Its net loss for Q4 FY25 was ₹7,166.1 crore. The company’s board has approved plans to raise ₹20,000 crore, pending approvals.

Read More,Inox Wind Share Price Drops for the 2nd Day on June 3; Know the Reason Behind the Fall.

Vodafone Idea Share Price Movement

As of 12:25 PM IST on June 3, Vodafone Idea share price was trading at ₹6.84, down 2.70% for the day. The stock opened at ₹6.89, hit a high of ₹7.12, and a low of ₹6.83 during intraday trade. The company has a market capitalisation of ₹74,210 crore. It does not currently have a P/E ratio or dividend yield. The stock has a 52-week high of ₹19.18 and a 52-week low of ₹6.46.

Conclusion

Vodafone Idea’s future depends heavily on government relief and fresh funding. While the stock shows short-term stability, its long-term survival remains uncertain without swift policy support and improved financial health.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.