Vodafone Idea share price tanks 18% after SC flays telcos for non-payment of AGR dues
BusinessToday.In February 14, 2020
Vodafone Idea share price erased all early morning gains today after Supreme Court 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 apex court also asked telcos as to why contempt proceedings should not be initiated against them for not paying AGR dues and not complying with the SC's earlier October 23, 2019 order.
Vodafone Idea share price tanked 18.52% to Rs 3.65 against previous close of Rs 4.48 on BSE. 1,151 lakh shares of Vodafone Idea changed hands amounting to turnover of Rs 48.36 crore. Market cap of the firm fell to Rs 10,718 crore.
Vodafone Idea stock has lost 80% in last one year and fallen 39.61% since the beginning of this year.
The apex court's bench flayed the DoT and telcos and said, "there is no respect for the court", reported The Economic Times. Notably, the DoT in its January 23 order had asked its circle officers not to initiate action against the telecom companies for non-payment of the AGR dues before the deadline.
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.
Earlier in the day, Vodafone Idea share price rose up to 14.95% to Rs 5.15 compared to the previous close of Rs 4.48 on BSE after the telco narrowed its Q3 loss to Rs 6,438.8 crore compared to Rs 50,922 crore loss posted for the quarter ended September 2019. The stock moved in a price range of 33% in trade today. The firm said it accounted for most of the liabilities of Rs 44,150 crore related to licence fee and spectrum usage charges in Q2 of current fiscal.
BY Aseem Thapliyal