Is the 4-year lifeline enough to send Vodafone Idea soaring? Not quite

NEW DELHI: Shares of Vodafone Idea (Vi) surged 10 per cent in Thursday’s trade after the government approved a relief package for the telecom sector that included a four-year moratorium on spectrum and AGR payments.

Analysts said the relief package is focused on annual cash outflow deferral for telcos, which provides the much-needed relief to Vodafone Idea. It is a forward-looking one, they said, the package also included long-term measures such as the elimination of SUC on future spectrum purchases, a change in AGR definition and reduction in bank guarantees.

That said, the measures do not offer any relief on the balance sheet or profit & loss (P&L).