Shares Rebound Despite AGR Moratorium and Fresh Tax Dispute
Vodafone Idea announced on Thursday that it has been hit with a penalty order of 6.38 billion rupees (around $71 million) for allegedly underpaying taxes. The directive was issued by India’s goods and services tax authority, just a day after the government granted the financially strained telecom operator a partial moratorium on adjusted gross revenue (AGR) dues — a move that fell short of investor expectations for a full waiver.
The company, jointly owned by Aditya Birla Group and Vodafone Group, rejected the penalty order and confirmed plans to challenge it legally.
Despite the setback, Vodafone Idea’s shares rose 7.8% on Thursday, recovering from an 11% plunge the previous day when the government announced a five-year freeze on $9.76 billion in AGR payments. Analysts at Emkay cautioned that the moratorium alone would not be enough to resolve the operator’s deep liquidity challenges.
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