Shares of Vodafone Idea Ltd. tumbled nearly 8% on Friday, September 26, after the Supreme Court once again deferred hearing on the company’s plea against the Department of Telecom’s (DoT) additional Adjusted Gross Revenue (AGR) demand of ₹9,450 crore. The stock slipped to ₹8.04, compared to the previous close of ₹8.68.
The plea challenges DoT’s calculation, which includes ₹2,774 crore from FY18-19 dues post the Vodafone-Idea merger in August 2018 and ₹5,675 crore pertaining to pre-merger Vodafone Group liabilities. Vodafone Idea has argued that the demand goes beyond the scope of the Supreme Court’s 2019 ruling on AGR liabilities, alleging duplication in the calculation and seeking fresh reconciliation starting pre-FY17.
Last week, the Centre told the top court that it does not oppose the telecom operator’s plea but emphasized that a resolution is required, given its 49% equity stake in the company following the 2021 support package that converted ₹53,000 crore of dues into equity. However, ministers have clarified that no further relief is being considered, with both Chandra Sekhar Pemmasani and Jyotiraditya Scindia stating the Centre’s support has already been extended and there are no plans to convert Vodafone Idea into a PSU.
Despite recent rallies—the stock had gained 11% since last week’s hearing and is up 29.4% in the past month—Vodafone Idea remains under pressure, still trading below its FPO price of ₹11. On a year-to-date basis, the stock has managed an 8.4% gain.
