Telecom giant Vodafone Idea (Vi) shares fell nearly 5 per cent on January 21 after the giant issued a clarification on a news report that said the government was considering waiving Rs 1 lakh crore of AGR dues of telecom companies.
After opening at Rs 9.94, the shares fell nearly 6 per cent to hit an all-time low of Rs 9.37. Later, the shares recouped some losses and were trading 5 per cent lower at Rs 9.45 at the time of writing.
On January 18 (Saturday), the Economic Times reported that the government is considering a proposal to waive a large part of the adjusted gross revenue (AGR) dues imposed on telecom companies like Vodafone Idea and Bharti Airtel.
The report said that the proposal aims to waive 50 per cent of interest and 100 per cent of penalty and interest on fines. Following the report, Vodafone Idea shares surged on January 20 (Monday). They rose as much as 15 per cent to hit an intraday high of Rs 10.47. The shares later pared some gains and closed at Rs 9.11 per share.
In an exchange filing issued on January 20, Vodafone Idea reacted to the share price fluctuations following the report. “We have not received any communication from the government in relation to the above alleged matter. We will take necessary action as and when there is a development that requires disclosure,” the company wrote.
The Supreme Court had upheld the government’s definition of AGR in 2019 Notably, 75 per cent of these dues include interest, penalty and interest on fines.
Later, telecom companies filed a petition seeking recalculation of AGR dues due to a “serious” error in calculation of dues by the Department of Telecommunications. However, the apex court has rejected the petitions several times so far.
