Shares of Vodafone Idea Ltd dropped nearly 5% to ₹7.04 in early trade on May 19, after the telecom operator moved the Supreme Court challenging the Indian government’s decision to deny its plea to waive over $5 billion (₹41,000 crore) in interest and penalties related to statutory dues.
According to a Reuters report, the Department of Telecommunications (DoT) rejected Vodafone Idea CEO Akshaya Moondra’s April 29 request for relief from dues arising out of the 2019 Supreme Court verdict on adjusted gross revenue (AGR). In response, the company approached the apex court urging the government to act in “public interest,” stressing the strategic importance of the telecom sector. The plea is expected to be heard later this week.
The stock fell as much as 4.48% intraday, hitting a low of ₹6.98 before recovering slightly. It had closed at ₹7.37 in the previous session. The company’s market capitalization currently stands at ₹76,060 crore.
Vodafone Idea has been under intense financial strain following the Supreme Court’s AGR ruling, which substantially increased liabilities for telecom players. While the government converted part of the dues into equity—acquiring a 49% stake—the company continues to face mounting losses.
In its Q4 FY24 results, Vodafone Idea reported a net loss of ₹7,674.6 crore, up 19.5% year-on-year. Finance costs jumped 25.5% to ₹6,280.3 crore. For the full financial year, its net loss widened to ₹31,238 crore.
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