Voda surges as govt unlikely to encash bank guarantees for now

Shares of Vodafone Idea surged more than 45 per cent in the last two trading sessions after government indicated that the company’s bank guarantees are unlikely to be encashed for now. Vodafone Idea has to pay over Rs 56,000 crore to the government as adjusted gross revenue (AGRs) dues.Analysts said the government's move suggests it could give the debt-laden company more time to repay.Vodafone Idea stock ended 5 per cent higher at Rs 4.40 on Thursday.The stock declined 38 per cent between February 13 and 18 after the Supreme Court rejected a plea by telecom firms including Vodafone for extension in the payment schedule and asked them to deposit an estimated Rs 1.47 lakh crore in past dues for spectrum and licences by March 17.“The government could consider postponing or staggering other payments due to it, in order to give some flexibility to telcos to cough up money towards AGR (adjusted gross revenue) dues,” ET reported on Wednesday, quoting an official.Vodafone Idea's ratings have been downgraded by as many as three rating agencies in the past two days.Rating agency Crisil, on Thursday, downgraded Vodafone’s rating on the Rs 3,500 crore non-convertible debentures to 'B+' from 'BB' while continuing the rating on 'Rating Watch with Negative Implications'.

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