Latest news with #AGR
Mint
2 hours ago
- Business
- Mint
Retail investors slam Vodafone Idea over user wipeout, stock crash
Retail shareholders ofVodafone Idea Ltd (Vi) raised concerns on Friday over the company's continued loss of subscribers and its fragile financial health. During the extraordinary general meeting (EGM) convened to approve the ₹20,000 crore fundraise, shareholders questioned the management about the lack of upside in the share price and a significant fall, particularly in the aftermath of the follow-on public offer (FPO) last year. The absence of Aditya Birla Group chairman Kumar Mangalam Birla from the meeting also drew concern, with a few shareholders expressing disappointment over his non-attendance. The government is the largest shareholder in Vodafone Idea with a 49% stake, followed by promoters—Vodafone Group at 16.07% and Aditya Birla Group at 9.5%. Retail investors own 14.96% of the company. 'Despite the previous fundraises, including the government conversion, there is no upside in the share price. In fact, the government's equity investment (via dues conversion) in the company has also gone into losses (at the current share price). If the management cannot handle the company, it should consider selling or surrendering it to the government," Santosh Kumar Saraf, a retail shareholder of the company, said during the meeting. Also Read: Faster WiFi plan hits spectrum interference worry Saraf wondered aloud what would happen if the company defaulted even after the fundraiser. Lately, the government has been exploring a resolution on the telecom operator's substantial dues. As of 31 March, Vodafone Idea's total government dues stood at around ₹2 trillion, including ₹1.19 trillion in spectrum dues and ₹83,400 crore adjusted gross revenue (AGR) dues. Mounting expenses In the absence of any relief from the government, starting 31 March 2026, Vodafone Idea will have to pay an annual instalment of over ₹18,000 crore for the next six years towards AGR and spectrum dues to the government. The dues are under moratorium, which will expire in September. In 2025-26 itself, Vodafone Idea will have to pay ₹16,428 crore towards AGR dues and ₹2,539 crore towards deferred spectrum dues. Going by the company's share price performance, the Friday closing share price of ₹7.40 is over 38% lower than the FPO listing price of ₹12 in April last year. In fact, the government's investment in Vodafone Idea through two equity conversions at ₹10 a share has also fallen by 26% at the current share price. In August 2018, when Vodafone Group completed its merger with Idea, the company's share price was ₹30. 'The company needs to focus on increasing its business. Many small investors are stuck in the company for the last so many years," said Redeppa Gunduluru, another retail investor, who has expressed concerns over the losses he incurred recently and the volatile share price. 'Vi's continued subscriber losses and weaker data net adds remain key concerns. Despite potential acceleration in network investments, we believe regaining subscribers will remain a tall ask for Vi, given that peers—with superior free cash flow generation and deeper pockets—can keep customer acquisition costs higher," said analysts at Motilal Oswal in a note dated 2 June. 'Further, with no relief so far on AGR dues (repayments commence March 26) and no breakthrough on the debt raise, we believe Vi is likely to face an annual cash shortfall of ₹20,000 crore and may be unable to meet its capex guidance of ₹50,000-55,000 crore over FY25-27," the analysts said. Narender Chauhan from Uttar Pradesh, another shareholder of the company, asked the management about the company's road map in the next 3-4 years, its plans for pan-India 5G coverage, and clarity on the satcom services launch after its recent collaboration with US-based AST SpaceMobile on direct-to-device connectivity. Dodging queries In an exchange filing on 30 May, Vodafone Idea said its board had approved raising another ₹20,000 crore through a follow-on public offering, private placement, or other permissible mode. The company said a capital raising committee will evaluate and decide on the potential route of fundraising. This fundraising approval comes at a time when the telecom operator is also looking to tie up ₹25,000 crore in bank debt to fund the capex for network expansion. When shareholders asked about the use of the ₹20,000 crore proceeds, the company's chief financial officer Murthy G.V.A.S. said, 'The proceeds will be used for capital expenditure." The management, however, did not address the shareholders' queries about the company's survival and revival concerns and the way forward. Also Read: Next-gen gadgets, WiFi speeds to get boost as India to open up new spectrum Notably, since the merger, Vodafone Idea has raised total equity of around ₹56,000 crore, out of which around ₹27,000 crore has been contributed by the promoters, the company told the Supreme Court in a recent plea to seek waiver on AGR dues from the government. The plea, however, was rejected by the court. In the petition, the telecom company had said it would not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues worth ₹83,000 crore linked to AGR. On the shareholder questions, Ravinder Takkar, the company's non-executive chairman, said, 'most of the questions were related to items outside the agenda items (of the EGM)." Takkar, however, asked the company to take note of some of the suggestions made by the shareholders. Pinning its hopes Vodafone Idea is set to incur capital expenditure of ₹5,000-6,000 crore for the first half of 2025-26 to enhance its network and infrastructure. However, its next leg of spending would be dependent on funds from banks, the company's CEO, Akshaya Moondra, had said in an earnings call on 2 June. 'I see no reason why the government should be constrained in any way to offer relief…," Moondra had said. Vodafone Idea is the most widely held stock, with over 6 million retail shareholders (more than the State Bank of India), according to the company's letter to the department of telecommunications on 17 April seeking further support. In May last year, Vodafone Idea said it would incur a capital expenditure of ₹50,000-55,000 crore over the next three years to expand its 4G network and launch its 5G service. "Completion of ₹25,000 crore debt-raising is key for executing Vi's ₹50,000-55,000 crore capex programme. Higher government flexibility around AGR dues offers a ray of hope," IIFL Capital said in a note on 2 June. Also Read: Will private 5G networks take off, finally? The retail investors also questioned the company's management about the fall in subscriber base and whether there are any plans to merge with state-owned BSNL. In an interview withMinton 23 April, Union communications minister Jyotiraditya Scindia said there are no plans to merge Vodafone Idea with BSNL. 'I do not think it is necessarily inefficient to have two competing businesses. There are multiple verticals where the government has competing businesses. Also, there was no physical cash outgo in this (Vodafone Idea) conversion. What the government has retained is an upside, no downside," Scindia had said. As of 31 March, Vodafone Idea had 198.2 million mobile subscribers. Even as Vodafone Idea has been losing subscribers for a long time now, the company's subscriber churn rate has slowed down during the March quarter. Compared to the loss of 5 million subscribers each in the September and December quarters, its subscriber churn slowed down to 1.6 million in the fourth quarter.
Business Standard
17 hours ago
- Health
- Business Standard
60% of Indians Sleep less than 6 Hours Nightly as Sleep Supplements Surge 650%
NewsVoir Mumbai (Maharashtra) [India], June 27: Three out of five Indians aren't getting adequate nightly sleep, with a quarter reporting their sleep has worsened since the pandemic, according to a new trend report from AGR Knowledge Services. Rather than seeking medical help, most are turning to online solutions and supplements, creating a booming marketplace for sleep aids. The report, "The Modern Sleep Bazaar: How Sleep Debt Became India's Wellness Opportunity," analyzed digital conversations, search queries and consumer sentiment to map the country's growing sleep crisis and the commercial response. Key findings include: * Sleep gummies saw 650% spike in search interest over the past year * Online searches for "how to sleep 8 hours in 4" and similar quick-fix terms are increasingly common * Interest in natural ingredients like melatonin, magnesium, ashwagandha and chamomile has surged * Over 30-40 brands are active in India's sleep supplement space, but few are established players "What we're seeing is a fundamental shift from treating sleep aids as one-off solutions to integrating them into nightly rituals," said Suyog Keluskar, President of the Social Media Intelligence wing of AGR Knowledge Services. "Consumers aren't just buying products--they're buying peace of mind and turning sleep into an active wellness practice." The research reveals significant gaps in the market. While consumers are actively searching for solutions, their digital conversations show heavy emphasis on safety concerns, dependency risks and product effectiveness--indicating demand for more transparency from brands. The trend represents a major opportunity for established health and wellness companies to enter the space with credibility, particularly as search behaviour shows consumers are looking for reassurance as much as results. This transformation reflects broader changes in how Indians approach wellness, with sleep joining fitness and nutrition as an active health pursuit rather than a passive necessity. AGR's social listening methodology combines AI technologies with industry expertise to extract insights from real-time online / social media conversations, revealing consumer emotions, fears and aspirations beyond surface-level mentions and hashtags. To request the copy of the report, write to kushal@ AGR executives are also available for interviews and additional data insights.
The Wire
17 hours ago
- Health
- The Wire
60% of Indians Sleep less than 6 Hours Nightly as Sleep Supplements Surge 650%
AGR Knowledge Services reveals how sleep deprivation is driving India's newest wellness market Mumbai, Maharashtra, India (NewsVoir) Three out of five Indians aren't getting adequate nightly sleep, with a quarter reporting their sleep has worsened since the pandemic, according to a new trend report from AGR Knowledge Services. Rather than seeking medical help, most are turning to online solutions and supplements, creating a booming marketplace for sleep aids. The report, "The Modern Sleep Bazaar: How Sleep Debt Became India's Wellness Opportunity," analyzed digital conversations, search queries and consumer sentiment to map the country's growing sleep crisis and the commercial response. Key findings include: • Sleep gummies saw 650% spike in search interest over the past year • Online searches for "how to sleep 8 hours in 4" and similar quick-fix terms are increasingly common • Interest in natural ingredients like melatonin, magnesium, ashwagandha and chamomile has surged • Over 30-40 brands are active in India's sleep supplement space, but few are established players "What we're seeing is a fundamental shift from treating sleep aids as one-off solutions to integrating them into nightly rituals," said Suyog Keluskar, President of the Social Media Intelligence wing of AGR Knowledge Services. "Consumers aren't just buying products—they're buying peace of mind and turning sleep into an active wellness practice." The research reveals significant gaps in the market. While consumers are actively searching for solutions, their digital conversations show heavy emphasis on safety concerns, dependency risks and product effectiveness—indicating demand for more transparency from brands. The trend represents a major opportunity for established health and wellness companies to enter the space with credibility, particularly as search behaviour shows consumers are looking for reassurance as much as results. This transformation reflects broader changes in how Indians approach wellness, with sleep joining fitness and nutrition as an active health pursuit rather than a passive necessity. AGR's social listening methodology combines AI technologies with industry expertise to extract insights from real-time online / social media conversations, revealing consumer emotions, fears and aspirations beyond surface-level mentions and hashtags. To request the copy of the report, write to kushal@ AGR executives are also available for interviews and additional data insights. (Disclaimer: The above press release comes to you under an arrangement with Newsvoir and PTI takes no editorial responsibility for the same.).
Time of India
2 days ago
- Business
- Time of India
Be cautious on Voda; Bharti Airtel & Bharti Hexacom better investment options: Sudip Bandyopadhyay
Sudip Bandyopadhyay , Group Chairman, Inditrade Capital , says Vodafone's AGR dues and operational struggles continue despite some positive developments. The company faces significant financial challenges with substantial dues and ongoing customer losses. So, Vodafone remains a speculative stock. Bandyopadhyay recommends Bharti Airtel or Bharti Hexacom as better investment options in the telecom sector due to their strong performance and potential benefits from future price hikes. Let's talk about the telecom space and everything we are seeing happening with Vodafone on one hand, while on the other hand, Bharti Airtel was at a life-time high yesterday. What are you making of the telecom space especially after the minister's comments that they prefer that the Indian telecom market is not a duopoly? Sudip Bandyopadhyay : The statement is definitely a welcome development from a Vodafone perspective. But we have seen too many flip-flops and too many things changing as far as Vodafone and this entire AGR due related issue. Of course, conceptually we should not have a duopoly and we should have more players and competition, but the reality is Vodafone has been suffering for a very long time. And beyond all these dues, operationally also Vodafone has not been performing well. They are still losing customers on a monthly basis and that definitely points to operational weakness. Yes, the rate of loss of customers on a monthly basis has come down, but the fact remains that they are still losing customers and that definitely is not a good sign. Of course, the balance sheet needs major amendment, because even at the end of this year, unless something is done, their AGR dues is about Rs 16,000 crore and there is no way Vodafone can pay this amount through internal accruals. So, they need either a waiver or a postponement by the government or some kind of major fund infusion because bank loans are very difficult for them to get. Under these circumstances, Vodafone still remains a speculative stock and if one has to play the telecom space, they should look at Bharti Airtel or Bharti Hexacom. Both are doing well and are definitely good buys. Even if we look at the last price hike which the telecom companies took, the biggest beneficiary has been Bharti Airtel. The flow into the P&L has been best for Bharti. One more hike is expected during the current fiscal and that should benefit Bharti Airtel disproportionately. Under these circumstances that is one stock one should look at. We have seen a lot of new regulations coming into play with respect to the life insurance companies and insurance as a whole. They are also undertaking a big campaign when it comes to the life insurance side of the business. What do you make of the insurance pack? How do you see things moving from here because everyone is talking about the big opportunity in growth for these insurance players? But a lot really has to come into the numbers as well. Sudip Bandyopadhyay: Insurance is humongous and we are just scratching the surface. But the reality is, as you rightly said, these have not flown into the numbers of the listed companies at least and under these circumstances, one has to take a slightly long-term view if you are investing in insurance companies. Life insurance is a sector which has got significant potential and amongst the listed companies, LIC merits attention for multiple factors. While the performance has not been anything great in the recent past compared to private peers, the fact remains that the potential is huge and things have started improving at LIC's level and valuation-wise it still definitely seems attractive compared with private peers. Live Events You Might Also Like: Telecom industry AGR shows modest 1.7% rise in Q4 FY25 So, LIC from a long-term perspective can be definitely looked at. One can look at SBI Life as well and it also offers value for money opportunity at this stage considering the strength in bancassurance and the strength of channel business as far as this insurance is concerned. You Might Also Like: Duopoly not good, must have competition in every sector: Jyotiraditya Scindia Not received communication from govt regarding considering relief of Rs 84,000 cr, says Vodafone Idea ETMarkets WhatsApp channel )
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Business Standard
3 days ago
- Business
- Business Standard
Vodafone Idea shares up 3% in trade; what is driving investor interest?
Vodafone Idea (Vi) shares advanced 3.3 per cent in trade on Wednesday, logging an intraday high at ₹7.1 per share on BSE. At 10:36 AM, Vodafone Idea share price was trading 2.91 per cent higher at ₹7.07 per share on the BSE. In comparison, the BSE Sensex was up 0.7 per cent at 82,630.49. The company's market capitalisation stood at ₹ 76,598.53 crore. Its 52-week high was at ₹19.15 per share and 52-week low was at ₹6.3 per share. Vodafone Idea's clarification The company has informed investors that a report about the government considering relief on ₹84,000 crore dues of Vi was doing rounds. In reference to this, the company clarified through its exchange filing that it has not received any communication from the government. "We have not received any communication from the Government in relation to the above-reported matter. As and when there is any development which requires disclosure, we will do the needful," the filing read. The Supreme Court (SC) recently, dismissed petitions by Bharti Airtel, Vodafone Idea, and Tata Teleservices seeking waivers on interest, penalties, and interest on penalties related to adjusted gross revenue (AGR) dues. A bench of Justices JB Pardiwala and R Mahadevan described the petitions as "misconceived" and criticised the companies for approaching the court. The ruling came a day after Vodafone Idea filed a plea seeking relief from AGR liabilities exceeding ₹45,000 crore, citing financial distress. Reports had suggested that Vodafone Idea had warned that it may not be able to sustain operations beyond FY26 without additional state assistance. ALSO READ | Brokerage view on Vodafone Idea Share: Post the rejection, domestic brokerage Motilal Oswal reiterated its 'Sell' rating for a target of ₹6.5 per share. The brokerage had noted that Vi continued to lose market share to peers due to lower Average Revenue Per User (ARPU) translation, given its inferior subscriber mix and elevated subscriber analysts at Motilal believed the company's network investments remain contingent on debt raise, which, in turn, is dependent on continued support/AGR relief from government (₹20,000 crore+ annual cash shortfall over FY26-31E.
