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Vodafone Idea (Vi) shares rose on Monday after the company announced that it has received a two-year extension to repay its adjusted gross revenue (AGR) dues. The company has also extended the timeline for the redemption of its debt.
The telecom operator had to pay Rs. 58,254 crore to the government by March 31, 2023, as AGR dues. However, the company has now been given until March 31, 2025, to repay the dues.
Vi has also extended the timeline for the redemption of its debt. The company had to redeem Rs. 43,500 crore by March 31, 2023. However, the company has now been given until March 31, 2025, to redeem the debt.
The extension of the AGR dues and debt redemption deadline will help Vi to improve its financial position. The company has been struggling financially due to its high debt and AGR dues.
The extension of the deadlines is also a positive sign for the telecom sector. The sector has been facing financial challenges due to the entry of Reliance Jio. The extension of the deadlines will help the other telecom operators to stay afloat and compete with Jio.
The share price of Vi rose by 3.5% to Rs. 12.75 on Monday. The stock has been volatile in recent months, but it has been trending upwards in the past few weeks.
The extension of the AGR dues and debt redemption deadline is a positive development for Vi. However, the company still faces a number of challenges, including its high debt and stiff competition from Jio.
The company will need to take steps to improve its financial position and compete with Jio. If it can do so, the stock could see further upside in the long term.
