Vodafone Idea shares: Shares of crisis-hit telecom company Vodafone Idea are in focus today. The company’s stock saw a big decline and the stock fell by about 16%. Vodafone Idea shares had reached an intraday low of Rs 10.98. The reason behind this decline in shares is a decision of the Supreme Court. In fact, the Supreme Court has rejected the petition of telecom giants Vodafone Idea and Bharti Airtel to re-calculate the Adjusted Gross Revenue (AGR) dues. Let us tell you that the telecom companies had filed corrective petitions citing mathematical error in the calculation of outstanding AGR. Vodafone Idea’s AGR dues are currently ₹ 70,300 crore. According to IIFL Securities, Bharti Airtel currently owes ₹ 36,000 crore to AGR.
What is the detail?
In a setback for telecom companies, an apex court bench of Chief Justice DY Chandrachud, Justices Sanjiv Khanna and BR Gavai on Thursday dismissed a batch of petitions on recomputation of AGR dues. The curative petitions of telcos have urged the Supreme Court to reconsider its 2019 verdict in favour of the Department of Telecommunications (DoT) order seeking AGR and other non-revenue related dues. The telcos claimed that the DoT had committed a ‘serious mistake’ in calculating AGR dues and thereby imposed ‘arbitrary’ penalty amount.
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Company shares
Seema Srivastava, Senior Equity Analyst at SMC Global Securities, said, “Now that the Supreme Court has rejected the telco’s plea for recalculation of AGR, the recovery prospects for Vodafone Idea shares have further diminished. This is why the telecom stock is nosediving today. At 12:00 pm, Vodafone Idea shares were locked in a 15% lower circuit at Rs 10.96, while Bharti Airtel shares were trading 0.65% higher at Rs 1,665.65 on the NSE.
