Vodafone Idea shares falls 11% on Monday, May 19, after the Supreme Court dismiss company’s writ petition seeking a pressing support on their Adjusted Gross Revenue (AGR) dues. In response, shares of Indus Towers also fell as much as 3.5%. The Supreme Court, while dismissing the petition, called it ‘surprising’ and misconceived.’
Vodafone Idea had sought a pressing hearing in the Supreme Court last Friday, seeking further relief on dues worth as much as ₹30,000 crore attributable to penalty and interest on the penalty aspect of the AGR levy.
Vodafone Idea shares decline 11 %
Vodafone Idea had mentioned that the sector will crumble in its entirety if the government does not lend it similar support. The government currently holds a 49% stake in Vodafone Idea, after converting some of the agency’s earlier dues into equity.
Following Vodafone Idea, Bharti Airtel had also filed a sparkling plea seeking a waiver of its AGR dues, declaring that comfort has to be granted to all license holders in a non-discriminatory manner.
Company face financial pressure
Bharti Airtel has claimed that a non-supply of support will affect not just Bharti Airtel, but also the telecom industry. As many as 59.06 lakh retail shareholders, or people with approved share capital of as much as ₹2 lakh, now have a stake in Vodafone Idea at the end of the March quarter. Vodafone Idea shares are currently trading 8.6% lower at ₹6.76, while the ones of Indus Towers are down 3% after the dismissal of the petition.
Read also: Shocking Bangalore Accident: A Men Ask Software Engineer to Fetch Cigarettes, Hit Him after Refusing