Vodafone Idea shares crash to 52-week low as SC rejects AGR plea

19 Sep 2024 , 03:15 PM

Shares of debt-laden Vodafone Idea fell as much as 20% to ₹10 on NSE on Thursday after the Supreme Court denied telecom operators’ motion for re-computation of Adjusted Gross Revenue (AGR).

Last year, Airtel and Vi asked the Supreme Court to hear their curative petitions in “open court” against an earlier ruling that rejected their requests for rectification of what providers claimed arithmetic flaws in the DoT’s calculation of AGR dues.

For Vi, in 2019, the Supreme Court upheld the Department of Telecom’s AGR demand, resulting in a burden of ₹58,000 crore. With the interest levy, the burden has increased to ₹70,320 crore as of the end of FY24.

Vodafone Idea’s curative plea in the AGR case sought three key remedies: correction of any errors in the AGR demand calculations, a penalty reduction to 50% of the total shortfall amount, and an adjustment of the penalty interest rate to 2% above the State Bank of India’s (SBI) prime lending rate.

Goldman Sachs recently set a target price of ₹2.5 for Vi, indicating a probable 83% drop.

At around closing Vodafone Idea was trading 19.07% lower at ₹10.44, against the previous close of ₹12.90 on NSE. The counter touched an intraday high and low of ₹13.02, and ₹10, respectively.

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