India has granted a five-year moratorium on adjusted gross revenue (AGR) dues owed by Vodafone Idea, a government source told Reuters on Wednesday.
The relief comes months after India’s top court said the government can consider the company’s relief request for all of its AGR dues.
“The five-year moratorium gives the company recovery time. The Street anticipated a waiver of some sort, but that has not happened,” said Vinit Bolinjkar, head of research at Ventura Securities.
Vodafone Idea seeks court help after India rejects request on dues, documents show
Vodafone Idea shares, which had risen more than 6% on Wednesday, reversed course and fell as much as 15%.
Vodafone Idea said it would not comment on media speculation and would wait for official communication on the matter, adding that any development would be disclosed through a regulatory filing.
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