After the Supreme Court’s decision on the AGR dues case, the shares of Vodafone Idea (Vi) and Indus Towers are witnessing a huge decline. The Supreme Court has rejected the curative petition of telecom companies, in which a demand was made to recalculate the AGR.
After the news, Vodafone Idea fell by more than 17%. The stock fell to a 52-week low of Rs 10.36. However, Bharti Airtel’s stock gained 1%. Indus Tower’s stock also fell by 10% and fell to Rs 366.35.
Former Bharti Airtel COO Ajay Puri said that the Supreme Court’s decision is a big setback for Vodafone’s revival plan. There is a loss of Rs 5 per share on fair value.
Vodafone Idea’s AGR liability till June 2024 was Rs 70,300 crore, which is 33% of its debt. Recalculation of dues would have reduced AGR by Rs 30,000-35,000 crore. Bharti Airtel, Vodafone Idea and other companies had filed a curative petition in the Supreme Court against the September 2020 order against telecom companies.
These companies paid a hefty amount to the government in 2019 to clear the dues of interest, penalty and interest on penalty. In 2020, telecom companies went to the Supreme Court and alleged that there was a serious mistake in the calculation of AGR by the Department of Telecommunications.
Telecom stocks fell sharply
