Vodafone Idea share price crashes over 5% as fine print of SC order on AGR dues raises fresh concerns

Shares of debt-ridden telecom firm Vodafone Idea declined by over 5% in intraday trading on Thursday, October 30, amid concerns that the Supreme Court's order offers only partial relief to the company.

According to the Supreme Court's written order, the claim is restricted only to the additional adjusted gross revenue (AGR) demand raised for the period up to the financial year 2016-17. According to certain media reports, citing analysts, the relief, if provided, will be limited to the new AGR demand of ₹9,450 crore.

“It is further to be noted that the prayer in the petition itself restricts its claim only to the additional AGR demand raised by the respondent for the period up to the Financial Year 2016-17,” the Supreme Court order read.

The Supreme Court order further specified that it applies only to Vodafone Idea, dealing a blow to Bharti Airtel, whose shares also declined nearly 1.5% in trade today.

We further clarify that this order is passed only with regard to the petitioner-Vodafone Idea Ltd., taking into consideration the peculiar facts and circumstances of the case as put up by the Union of India, said the apex court in its order.

(More to come…)

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