Vodafone Idea share price rose in early trade today after the telco on Saturday said it was assessing the amount that it would be able to pay to DoT towards the dues calculated based on AGR (Adjusted Gross Revenue). The company proposes to pay the amount so assessed in the next few days. Share price of Vodafone Idea gained over 18% to Rs 4.09 compared to the previous close of Rs 3.44 on BSE. Vodafone Idea stock has gained after five days of consecutive fall.
The mid cap stock lost 80.28% in last one year and fallen 41.88% since the beginning of this year. In last one week, the stock has lost 30%. 405.52 lakh shares of Vodafone Idea changed hands amounting to turnover of Rs 15.31 crore on BSE. Market cap of the firm rose to Rs 10,804 crore.
"The company is currently assessing the amount that it will be able to pay to DoT towards the dues calculated based on AGR (Adjusted Gross Revenue), as interpreted by the Hon'ble Supreme Court in its order dated 24 October 2019. The company proposes to pay the amount so assessed in the next few days," said Vodafone Idea in a communication to bourses.
On Friday, Supreme Court (SC) dismissed all fresh petitions filed by telcos such as Bharti Airtel and Vodafone Idea in a case related to payment of AGR (Adjusted Gross Revenue) dues. The pleas filed by Vodafone Idea, Bharti Airtel, and Tata Teleservices sought more time for payment of adjusted gross revenue (AGR) related dues. The telecom companies wanted to negotiate a fresh payment schedule with the Department of Telecommunications (DoT), which has issued demand notices to them.
Vodafone Idea has maintained that continuation of its business will depend on the outcome of its modification plea filed before the Supreme Court. The firm is seeking more time to pay the dues, which is estimated to be over Rs 52,000 crore. After the SC hearing, DoT issued fifth and final notice to telecom operators on February 14 for making payment on the same day but none of the companies paid the dues. Vodafone Idea said that it has received notice from the DoT directing immediate payment.
By Aseem Thapliyal