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Telecom shakeup: Vodafone Idea shares soar as AGR dues finally sorted
Mumbai/IBNS: Vodafone Idea shares surged 8.78% to an intraday high of Rs 12.51 on the BSE on Friday, amid widespread losses on Dalal Street, media reports said.
The jump in share prices came after the telecom company announced a repayment schedule for its adjusted gross revenue (AGR) dues, capping annual payments at $13.79 million over the next six years.
Earlier, the Union Cabinet approved a relief package for Vodafone Idea, freezing AGR dues at Rs 87,695 crore and setting a revised repayment schedule spanning 10 years from FY32 to FY41, according to Livemint.
The company also reached a settlement with Vodafone Group regarding long-pending contingent liabilities stemming from the 2017 merger of Vodafone India and Idea Cellular.
Under the revised arrangement, Vodafone Idea will receive Rs 5,836 crore — Rs 2,307 crore in cash over the next year, and the remaining Rs 3,529 crore through the sale of equity shares held by certain Vodafone Group shareholders, the company said in an exchange filing.
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