Govt may convert part of Vodafone Idea dues after 4-year moratorium: Analysts

Mumbai: After converting Vodafone Idea’s accrued interest on adjusted gross revenue (AGR) dues into equity, the government may also convert a part of the telecom operator’s outstanding payments on spectrum and AGR to shares, after the four-year payment moratorium is over, said analysts.

“Our base case remains that (Vodafone) Idea will be a going concern and we assume in the long term that a part of outstanding debt (dues on statutory payments) on spectrum and AGR will also be equitised by the government,” JP Morgan said in a report.