Vodafone Idea Crashes 20%, Airtel, RCom Stocks Edge Up Higher On AGR Verdict

The Supreme Court docket’s decision on adjusted gross revenue (AGR) dues triggered sharp reactions amongst telecom shares as Vodafone Concept noticed its share value nosedive by 20 per cent, whereas different gamers of the business moved greater. 

Vodafone Concept Restricted which owes greater than Rs 50,000 crore in AGR-related dues and has been slipping into debt over the previous couple of quarters had sought 15 years to pay its half. Quickly after the choice got here, the inventory crashed regardless of buying and selling being halted twice after it hit decrease circuit. At 12:20 pm, the inventory was down 19.92 per cent. 

Different main gamers nevertheless reacted positively to the decision. Bharti Airtel which had additionally sought 15 years to pay its dues hit the day’s excessive rising 5.60 per cent. At 12:20 pm, the inventory had pared some features however was nonetheless 4.87 per cent within the inexperienced.

Out of enterprise firms Reliance Communications (RCom) which additionally owes AGR dues to the federal government, too witnessed upticks. RCom edged up 5 per cent, whereas Reliance Industries which owns the subsidiary Reliance Jio was gaining almost a per cent. The Tata Teleservices inventory, then again was down a per cent.

General, the BSE Telecom index was up 2.34 per cent. The broader  market was gaining about 0.75 per cent.

The highest court docket on Tuesday, allowed the telecom firms to pay their adjusted gross income (AGR) dues dues in a staggered method unfold over 10 years. The Supreme Court docket bench led by Justice Arun Mishra delivered the judgement on the reimbursement of AGR dues by the telecom firms. The highest court docket  additionally directed the telecom firms to pay 10 per cent of the dues by March 31, 2021.