English
English
English
Supreme Court is being seen as a sign of potential relief for Vodafone Idea. Experts believe that if the government adopts a flexible stance on AGR dues and interest-penalty payments, it could help the company attract investment and achieve financial stability.
Supreme Court comment sparks 10% jump in Vodafone Idea Stocks
New Delhi: A significant comment by the Supreme Court led to a sharp surge in the shares of telecom company Vodafone Idea Limited (Vi). On November 3, the company's shares hit a 10% upper circuit, reaching Rs 9.6 per share. This surge came after the Supreme Court noted that Vodafone Idea had sought relief not only on the additional AGR dues but also on the revaluation of all outstanding dues. The court clarified that the government was free to grant relief on both issues.
During the Supreme Court hearing, Vodafone Idea's lawyer had requested an amendment to paragraph 6 of the court's earlier order. The court approved this amendment, providing significant relief to the company.
This news boosted investor confidence, and Vodafone Idea shares surged. As of 2:35 pm on November 3, the shares were trading 10% higher at Rs 9.6 per share.
Sensex, Nifty hit new highs; Top stocks to watch today!
This trend was also reflected in other telecom companies, Indus Towers shares rose 4% and Bharti Airtel gained 1%.
Vodafone Idea has challenged the additional AGR dues of Rs 9,450 crore demanded by the Department of Telecommunications (DoT). The company has sought relief from interest and penalties.
Currently, Vi owes approximately Rs 83,400 crore in AGR dues. The company will have to pay approximately Rs 18,000 crore every year from March 2026.
The company's total liability, including interest and penalties, is estimated at approximately Rs 2 lakh crore.
The company has requested the government to re-examine and resolve all AGR dues for the period up to FY 2016-17 under the deduction scrutiny rules of February 3, 2020.
Indian stocks in green for second day after heavy sell-off
According to reports, a major investment in Vodafone Idea will only be possible if the government comes up with a comprehensive financial resolution package based on AGR and spectrum dues.
The existing promoters' stake may decline following the investment by potential investor TGH Group. According to the report, the government may gradually reduce its stake below 49% by converting the outstanding amount into shares.
Currently, the government holds a 48.99% stake in the company, while the Aditya Birla Group holds 9.50% and Vodafone PLC holds 16.07%.
This comment by the Supreme Court is being seen as a sign of potential relief for Vodafone Idea. Experts believe that if the government adopts a flexible stance on AGR dues and interest-penalty payments, it could help the company attract investment and achieve financial stability. This move could provide a new direction not only to Vi but to the entire telecom sector.
