AGR relief for Vi likely to trigger equity raise, govt stake dilution

Relief from the Centre for Vodafone Idea (Vi) may come well ahead of the March 2026 deadline, which could in turn trigger dilution of government stake in the third-largest telecommunications carrier, analysts at various brokerages said.

- BS REPORTER

The relief, following the Supreme Court’s decision to allow the government to reassess Vi's adjusted gross revenue (AGR) dues, could unlock a fresh equity raise and enable the government to further convert debt to equity, which would “set off a chain of positive developments” for the telco, according to Citi Research.