Vi shares rally on hope of AGR relief

SHARES OF DEBT-RIDDEN telecom operator Vodafone Idea rallied as much as 11% in intra-day trade on Friday after reports that the government may give it some relief on adjusted gross revenue (AGR) dues.

- URVI MALVANIA

The Department of Telecommunications (DoT) is understood to have written to the Prime Minister's Office (PMO) informally proposing solutions to ease the cash flows of the cash-strapped telco.

Sources in the know also said the DoT has been asked by the PMO to draw up a fresh formal proposal suggesting ways to resolve the AGR issue for both affected telcos - Vodafone Idea and Bharti Airtel.

"It remains to be seen what formula the DoT can offer in order to help the telcos," an executive in the know said. Possible solutions could include waiver of some amount of the telcos' dues, or an extension on the moratorium for payment, or a combination of both.

Airtel's shares also rose, though the rally was more subdued, hitting an intra-day high of ₹1,947.90 (up 0.87%), and ending the day's trading at ₹1,932.4 (up 0.14%).