Vodafone Idea Surges On Report Amazon, Verizon Resume Investment Talks

Shares of Vodafone Idea surged as much as 13.52 per cent to hit an intraday high of Rs 11.25 after a report suggested that Amazon and US-based telecom company - Verizon - have resumed talks to buy stake in the company. Amazon and Verizon resumed talks to buy significant stake in Vodafone Idea for more than $4 billion, Mint newspaper reported citing two people aware of the negotiations. The talks have resumed after the Supreme Court's verdict on staggered payment of government dues, the report added.

Earlier this week, the top court gave telecom companies gave telecom companies 10 years to clear their adjusted gross revenue (AGR) dues, thus ending the uncertainty over dues and re-payment tenure.

A three-judge bench of the Supreme Court had directed the telecom companies to pay 10 per cent of the dues by March 31 next year. It further said the 10-year timeline for payment of AGR dues will begin on April 1, 2021 and the payments will have to be made in instalments till March 31, 2031.

Vodafone Idea has to pay Rs 50,400 crore to the government in licence fee, spectrum usage charges, interest and penalties and it has already paid Rs 6,854 crore.

Vodafone Idea had reported loss of Rs 25,460 crore in quarter ended June 30 from loss of Rs 4,874 crore in same quarter last year. The Mumbai-based telecom operator's revenue from operations fell 8 per cent annually to Rs 10,659.30 crore.

As of 12:37 pm, Vodafone Idea traded 10 per cent higher at Rs 10.87, outperforming the Sensex which was down 0.2 per cent.