Vodafone Idea shares fell 6% on October 6 after Supreme Court deferred hearing on its AGR plea to October 6.The telecom major had sought quashing of the additional adjusted gross revenue (AGR) demands for the period until 2016-17.At 11:30 am on September 26, Vodafone Idea shares were trading 6% lower at Rs 8.14 apiece. Solicitor General Tushar Mehta, appearing on behalf of the government, said the Department requires more time to present its side of the case.
Vodafone Idea stock fell as much as 8% intraday to Rs 7.90 apiece on the NSE, compared to a 0.6% decline in the benchmark Nifty 50. The relative strength index was at 72. It had declined 21% in the last 12 months and risen 3% on a year-to-date basis. The AGR issue dates back over a decade, involving a prolonged dispute between telecom companies and the government over the definition of adjusted gross revenue. In its 2019 ruling, the Supreme Court upheld the government's broader interpretation, which includes revenue from non-core operations.
This dramatically increased the dues owed by several telecom operators. The government has become the single largest shareholder in Vodafone Idea after acquiring shares worth Rs 36,950 crore in lieu of outstanding spectrum auction dues in March. Earlier, the government had acquired around 33% stake in 2023 in lieu of statutory dues worth over Rs 16,000 crore.Vodafone Idea owes more than Rs 83,000 crore in AGR dues to the government at present — of which — the company has sought a waiver on Rs 45,000 crore.