Vodafone Idea shares fell 15% on Thursday after the Supreme Court ruled on adjusted gross revenue (AGR) dues. The telecom giant's appeal was denied, which might have a significant influence on its market status.
What Happened: According to reports, the Supreme Court dismissed Vodafone Idea and Bhart Airtel's curative plea, which claimed irregularities in the computation of telecom department dues. In a September 2020 judgment, the Supreme Court directed the telecom companies to pay the dues over a 10-year period.
Vodafone has requested that the mathematical mistakes in the AGR demand be corrected, fines be limited to 50% of the deficit, and penalty interest rates be raised to 2% over the prime lending rate of the State Bank of India.
According to the report, quoting IIFL Securities, Vodafone Idea's cash flow condition will deteriorate without the relief, although Bharti Airtel's outlook is marginally favorable due to market share increases.
The research group noted that it will monitor whether the ailing telco will proceed with its debt-raising plans following the negative verdict, since fundraising is vital for the business to sustain its capital expenditures.
Shares of Vodafone Idea plummeted 14.88% to ₹10.98 on Thursday, then recovered some losses. Bharti Airtel shares surged 3.43% to a record high of ₹1,706.35 on the announcement.
