Vodafone Idea in Action: Telco in talks with banks & govt after SC relief — Fundraise on horizon?

Vodafone Idea Ltd (VIL) is engaging in discussions with banks and non-banking financial companies (NBFCs) to raise funds, according to a report by Zee Business.

The company’s management also confirmed that it continues to hold talks with the Department of Telecommunications (DoT) regarding its adjusted gross revenue (AGR) dues following the Supreme Court’s recent direction.

Management expressed optimism that a positive resolution from the government could ease access to financial support from lenders.

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AGR Dues and Stock Surge

As of September 2025, Vodafone Idea’s AGR dues stand at Rs 78,540 crore. The update has lifted investor sentiment, with the company’s shares gaining nearly 7–8 per cent in Monday’s trade.

The developments come after a significant order by the Supreme Court, which permitted the Centre to reconsider and reconcile Vodafone Idea’s pending AGR dues amounting to Rs 5,606 crore for the financial year 2016–17, citing that the matter falls within the government’s policy domain.

Supreme Court’s Order and AGR Background

AGR, or adjusted gross revenue, is a key metric used by the government to determine the licence fees and spectrum usage charges payable by telecom operators.

Vodafone Idea had challenged the fresh AGR-related demands raised by the DoT, contending that these additional claims were unsustainable since its liabilities had already been finalised by the Supreme Court’s 2019 judgment on the matter.

Government’s Position and Court Observations

During the hearing, Solicitor General Tushar Mehta, appearing on behalf of the Centre, informed the court that the government currently holds 49 per cent equity in Vodafone Idea and that nearly 20 crore subscribers depend on its telecom services.

In view of these circumstances, the government expressed its willingness to re-examine the issues raised by the company to protect consumer interests.

The Supreme Court bench, comprising Chief Justice B.R. Gavai and Justice K. Vinod Chandran, acknowledged this position, stating that given the government’s significant equity stake in the company and the large subscriber base, there was no impediment to the Centre reconsidering the issue and taking appropriate steps.

Vodafone Idea’s Response and Past AGR Developments

Following the judgment, Vodafone Idea welcomed the court’s decision and said it looked forward to cooperating closely with the DoT to resolve the matter in the interest of its nearly 200 million subscribers.

In its BSE filing, the company stated, “In a positive development, the Hon’ble Supreme Court has permitted the Government to consider the grievances of Vodafone Idea Limited on the issues relating to AGR. We look forward to working closely with the Department of Telecommunications to resolve this matter in the interests of our nearly 200 million subscribers.”

Vodafone Idea has maintained that certain computational errors have led to duplicate entries and inflated AGR dues.

The apex court’s original 2019 ruling required telecom operators to clear their AGR liabilities, and a subsequent 2020 order allowed them a 10-year repayment window, with 10 per cent of the dues to be paid annually starting from March 31, 2021.

However, the court in 2021 had dismissed pleas by Vodafone Idea and others seeking corrections in the calculation of dues.