Mumbai, October 27 (Monday): Shares of Indus Towers Ltd gained nearly 2% to ₹366.90 on Monday after the Supreme Court observed that there is “no reason why the Centre should be prevented from reconsidering the issue” regarding Vodafone Idea’s additional AGR dues.
The observation from the bench led by Chief Justice BR Gavai came as a relief for the telecom ecosystem, particularly Indus Towers, which is one of Vodafone Idea’s key partners in the telecom infrastructure space.
What the Supreme Court said
The CJI noted that the Government of India, which now holds 49% equity in Vodafone Idea and caters to over 20 crore customers, is within its rights to re-examine and take appropriate steps on the AGR dues matter.
“Taking into consideration the change in circumstances, with the government holding a substantial stake and the matter’s public importance, we see no reason to prevent the Union from reconsidering the issue,” the court stated.
Why it matters for Indus Towers
Indus Towers derives a significant portion of its revenue from Vodafone Idea through tower rentals. The Supreme Court’s green signal for the government to revisit Vodafone Idea’s dues is being seen as positive for Indus Towers, as it reduces the risk of delayed payments and improves the telecom operator’s financial outlook.
Market reaction
Following the development, Indus Towers’ stock climbed 1.48% to ₹366.90 on the NSE, compared to the previous close of ₹361.55. The stock traded between ₹359.65 and ₹376.90 during the session, with a market capitalization of ₹988.20 billion.
Investor sentiment also improved across the telecom space, with Vodafone Idea shares jumping over 7% to ₹10.32, reflecting optimism that potential government intervention could lead to relief in long-pending AGR dues.
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