Shares of Vodafone Idea (NSE: IDEA) dropped sharply by 15.5% to ₹10.90 as of 12:16 PM, falling below the follow-on public offering (FPO) price of ₹11. The steep decline came after the Supreme Court ruled against telecom companies, rejecting their plea for a re-computation of Adjusted Gross Revenue (AGR) dues.
The stock opened at ₹12.99 and reached a high of ₹13.02 before plummeting to a low of ₹10.36. The previous close was ₹12.90, making today’s fall a significant one for the telecom giant.
The Supreme Court’s decision upholds Vodafone Idea’s AGR dues of ₹70,300 crore, adding further financial strain on the already struggling company. This ruling has caused a sharp sell-off, as investors react to the worsening outlook for the telecom player, raising concerns about the company’s ability to manage its enormous debt burden.
The steep drop below the FPO price has added further pressure, with Vodafone Idea’s future now hinging on its ability to secure funds or relief from the government, given the mounting dues and operational challenges it faces.
