Shares of Vodafone Idea settled nearly 14 per cent lower on Tuesday after the Supreme Court allowed the telecom companies to stagger their payments of the adjusted gross revenue (AGR) dues over the next 10 years.
The Vodafone Idea stock declined 13.73 per cent to settle at Rs 8.80 apiece on the National Stock Exchange (NSE). The stock had opened on a positive note and hit an intraday high of Rs 10.95 during the early trade on Tuesday before the SC announced its verdict on the AGR case. Soon after the verdict was announced, the stock erased all its gains and tanked 25 per cent to hit a lower circuit at Rs 7.65. On the BSE, the stock slipped 12.76 per cent to end at Rs 8.89. It had hit an intraday high of Rs 10.95 and a low of Rs 7.69.
Over 22.49 crore shares of Vodafone Idea were traded on the BSE while over 163.78 crore shares exchanged hands on the NSE, data from the respective stock exchanges showed.
As per the SC ruling, the incumbent mobile operators will have to pay 10 per cent of their AGR-related dues by March 31, 2021. The court also said that the Managing Directors (MDs) or Chief Executive Officers (CEOs) of these telecom firms would require to submit an undertaking to pay AGR dues as per the Supreme Court’s order.
The three-judge bench cautioned the telecom companies saying that failure to pay the installments of the AGR-related dues would invite penalty, interest and contempt of court.
Vodafone Idea, which faces a payment of more than Rs 58,000 crore, has only paid Rs 7,850 crore AGR dues till date. The telco will have to pay nearly Rs 1,128.4 crore as AGR dues every quarter for the next 10 years.
Earlier, Vodafone Idea had sought a 20-year payout time period which was declined by the court. It had told that it was willing to provide security through license and spectrum for its pending dues. The telecom operator had then modified its request to 15 years payout period.
In December last year, Vodafone Idea Chairman Kumar Mangalam Birla had said that it may have to shut operations if the government does not provide relief on the liability it faces on the past statutory dues.
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