EXCLUSIVE! Vodafone Idea, Bharti Airtel share prices are soaring! Here is why
AGR Dues: In a big development, Modi Cabinet is expected to give massive relief to telecom companies. Vodafone Idea, Airtel and other telcos may get 15 years to pay their AGR dues.
AGR Due: The stock market today hit lower-circuit but immediately after the re-opening trade session, the Indian share market witnessed fresh buying in the metal and telecom stocks. Vodafone Idea share price skyrocketed around 30 per cent in the re-opening trade session post-lower circuit while Bharti Airtel share price soared around 6.5 per cent. According to the Zee Business TV exclusive report, the Narendra Modi Government is expected to give massive relief to the telecom companies on the AGR (Adjusted Gross Revenue) dues. According to the Zee Business report, the Modi Government may announce 15 years' relief to the Indian telecom companies on paying the AGR. This is going to help Vodafone Idea and Bharti Airtel companies to a larger extent as these are the major telecom companies that got hit by the AGR liability.
AGR Dues: According to the Zee Business TV exclusive report, the Narendra Modi Government is expected to give massive relief to the telecom companies on the AGR (Adjusted Gross Revenue) dues payment. According to the Zee Business report, the Modi Government may announce 15 years' relief to the Indian telecom companies on paying the AGR. This is going to help Vodafone Idea and Bharti Airtel companies to a larger extent as these are the major telecom companies that got hit by the AGR liability. Vodafone Idea alone has to pay around Rs 53,000 crore!
See Zee Business Live TV streaming below:
Zee Business TV revealed this big development by saying, "Telecom stocks rise on expected AGR relief in the upcoming Modi Cabinet meeting. The central cabinet is expected to give 15 years AGR relief to the telecom companies, which is a big relief for Vodafone Idea and Airtel. Vodafone Idea has to pay around Rs 53,000 crore to the government while it has paid only Rs 3,500 crore, which is a mere 6 per cent of the net liability. This cabinet relief on AGR will make Aitel more comfortable as it has already paid around Rs 18,000 crore out of Rs 35,500 crore amount to be paid by the telecom company."
See Zee Business tweet below:
The report further added that it will have a positive impact on the banking sector as these telecom companies will now be able to repay their bank loans gradually. It will help banks to recover their money as the accounts will no longer become NPAs (Non Performing Assets).
The stocks that may benefit from this expected Modi Cabinet decision on the telecom AGR relief, apart from Vodafone Idea and Bharti Airtel, includes banking stocks like SBI, HDFC Bank and ICICI Bank shares.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.