Shares of debt-ridden telecom service provider Vodafone Idea Ltd fell up to 11% on Monday, May 19, after the Supreme Court dismissed the company’s writ petition seeking immediate relief on adjusted gross revenue (AGR) dues. In response, shares of Indus Towers also fell up to 3.5%.
The Supreme Court dismissed the petition, calling it ‘shocking’ and misconceived.
Vodafone Idea had last Friday sought an urgent hearing in the Supreme Court seeking further relief on dues of up to Rs 30,000 crore on account of interest and penalty on the penalty component of the AGR levy.
Vodafone Idea had mentioned that the sector would collapse completely if the government did not provide it further support.
The government currently holds a 49% stake in Vodafone Idea, after converting some of the company’s past dues into equity.
After Vodafone Idea, Bharti Airtel had also filed a fresh petition seeking waiver of its AGR dues, saying that all licensees should be given relief without any discrimination. Bharti Airtel has claimed that non-granting of relief will impact not only Bharti Airtel but the entire telecom sector.
Vodafone Idea had 59.06 lakh retail shareholders or people with an authorised share capital of up to ₹2 lakh holding stake at the end of the March quarter. Shares of Vodafone Idea are currently trading 8.6% lower at ₹6.76 after the petition was dismissed, while Indus Towers shares are down 3%.
