Vodafone Idea shares fall 9% after MoS Telecom rules out any further government relief

Shares of Vodafone Idea Ltd., have declined as much as 9% in early trading on Tuesday, August 26, after having gained as much as 20% in the last six trading sessions, of which they gained in five.

The fall come after Minister of State for Communications Chandra S Pemmasani ruled out any further relief to the debt-laden telecom operator.

In an exclusive interaction with CNBC-TV18 on Monday, Pemmasani said that no further relief package for Vodafone Idea is being considered by the government.

“Whatever we wanted to do has already been done,” referring to the conversion of nearly ₹53,000 crore of dues into government equity under the 2021 relief package. That conversion gave the government a 49% stake in the telecom company, making it its largest shareholder.

“Vodafone is up to their management. They are all business people. They know how to manage. It’s up to them how they want to take it forward," Pemmasani said. Telecom Minister Jyotiraditya Scindia in an exclusive interaction with CNBC-TV18 on July 2, had already confirmed that the government does not intend to make Vodafone Idea a PSU.

Shares of Vodafone Idea had rallied last week after reports had indicated that there could be some potential relief with regards to the AGR dues for the company.

Shares of Vodafone Idea are trading 8.2% lower at the start of trade on Tuesday, at ₹6.79. Both Friday and Monday's sessions saw over 100 crore shares change hands in a single trading session. The last instance of this happening in Vodafone Idea was between June 24-25 this year.