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Friday, December 06, 2019

Vodafone-Idea shares cracks over 20 per cent to settle at Rs 2.95

At 11:11 am, the stock of the telecom major was at Rs 3.09, down by Rs 0.61 or 16.49 per cent on the BSE, while on NSE it was at Rs 3.05, down Rs 0.65  or 17.57 per cent. Over 25.71 crore shares were traded across BSE and NSE so far in the trade on Thursday.

By: Express Web Desk | New Delhi | Updated: November 14, 2019 5:22:20 pm
vodafone idea Vodafone Idea stock hit an all-time low of Rs 2.85 on the National Stock Exchange (NSE) during intra-day trade on Thursday.

Shares of Vodafone Idea crashed 20.27 per cent to settle at Rs 2.95 on Thursday on the BSE over concerns of potential insolvency of the telecom giant. It settled at Rs 3.00 on the National Stock Exchange (NSE), down 18.92 per cent.

During the day, the stock cracked as much as 22.97 per cent on the NSE to hit an all-time low of Rs 2.85, while on BSE, the scrip fell 21.62 per cent to Rs 2.90 in intraday.

The concerns regarding the company’s future come after Vodafone Group on Tuesday said its future in India could be in doubt if it is forced to pay thousands of crores in statutory dues following the Supreme Court ruling.

“Financially there’s been a heavy burden through unsupportive regulation, excessive taxes and on top of that we got the negative Supreme Court decision,” news agency PTI reported quoting Vodafone chief executive Nick Read on a call with reporters after first-half results.

Department of Telecommunications (DoT) issued a notice to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court, PTI reported on Wednesday citing an industry source. As per the report, the DoT has given the option to telecom operators to clear all the dues on a self-assessment basis.

According to an internal estimate by the DoT, the total dues on the telecom service providers arising out of SC order are around Rs 1.33 lakh crore.  As per DoT’s estimate, the liability of Bharti Airtel Group is Rs 62,187.73 crore, Vodafone Idea Rs 54,183.9 crore and BSNL and MTNL Rs 10,675.18 crore. Companies under insolvency like Reliance Communications and Aircel have dues outstanding worth Rs 32,403.47 crore and companies under liquidation Rs 943 crore. (With PTI inputs)

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