Shares of Vodafone Idea Ltd. slipped nearly 4% on Friday, September 26, as investor sentiment turned cautious ahead of the Supreme Court hearing on the telecom operator’s plea against the Centre’s additional Adjusted Gross Revenue (AGR) dues demand.
The plea challenges the Department of Telecom’s (DoT) claim of ₹9,450 crore in additional AGR dues, which the company argues goes beyond the scope of the Supreme Court’s 2019 ruling. Of the total amount, ₹2,774 crore relates to FY18-19 dues after Vodafone and Idea merged in August 2018, while ₹5,675 crore pertains to pre-merger liabilities of Vodafone Group. Vodafone Idea has contested the calculations, alleging duplication and seeking fresh reconciliation from pre-FY17.
During last week’s hearing, the Centre told the court it did not oppose Vodafone Idea’s plea but emphasized the need for a solution, given its equity stake in the company. The government holds 49% in Vodafone Idea following the 2021 support package, which converted around ₹53,000 crore of dues into equity. However, it is not classified as a promoter.
Ministers have also ruled out any further relief for the debt-laden telecom operator. Chandra Sekhar Pemmasani, Minister of State for Communications, reiterated that the Centre had already extended necessary support, while telecom minister Jyotiraditya Scindia earlier clarified there were no plans to convert Vodafone Idea into a PSU.
Vodafone Idea shares ended 1% higher on Thursday at ₹8.68. The stock has gained 11% since the last Supreme Court hearing but continues to trade below its FPO price of ₹11. On a monthly basis, it is up 29.4%, while it has delivered an 8.4% gain so far this year.
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