Shares of Vodafone Idea slipped over 9% in early trade on Thursday, October 30, after the Supreme Court’s written order indicated that relief on adjusted gross revenue (AGR) dues is limited and applies only to the telco, not the wider industry.
At 9:51 AM, the stock was trading at ₹8.48, down 9.40% from the previous close of ₹9.36, with heavy volumes.
Limited scope of AGR relief
In its detailed order dated October 27, the Supreme Court clarified that the government may reconsider only the additional AGR dues raised up to FY2016-17, and only in the case of Vodafone Idea.
The bench led by Chief Justice B. R. Gavai observed:
“The prayer in the petition itself restricts its claim only to the additional AGR demand raised… up to the Financial Year 2016-17.”
The order further stated that the direction is passed solely for Vodafone Idea, owing to the “peculiar facts and circumstances” of the case, including the government’s 49% stake in the company.
This clarification dampened market optimism, as the broader expectation was that the relief could extend across the telecom sector or cover a wider timeline.
Market reaction & context
Vodafone Idea shares have been volatile in recent sessions amid expectations of clarity on AGR dues. With the Supreme Court now restricting relief only to additional demands up to FY17, analysts caution the benefit may be limited.
The company still faces significant financial pressure and upcoming capex needs as it prepares for 5G rollout and network expansion.
Key Market Data (as of 9:51 AM)
| Metric | Value |
|---|---|
| LTP | ₹8.48 |
| Day Range | ₹8.45 – ₹9.26 |
| Previous Close | ₹9.36 |
| Market Cap | ₹918.75 billion |
| 52-week Range | ₹6.12 – ₹10.57 |
| Avg Volume | 27.53 million |
Vodafone Idea’s near-term outlook remains tied to clarity on government support, tariff hikes, funding progress, and subscriber retention as competition intensifies in the telecom sector.
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