Vodafone Idea witnessed a 1% surge in its share price on Thursday, trading at ₹8.71, up from the previous close of ₹8.51.The stock rallied significantly, bouncing back strongly from earlier lows. The stock has now rallied around 38 percent in September so far as investors awaited Supreme Court's decision on possible relief from some AGR dues. Over the past week, Vodafone Idea has gained 11.59%, while the Sensex has dropped by 0.62%. The stock's one-month performance shows a robust increase of 25.32%, compared to the Sensex's modest gain of 0.69%.
The Supreme Court is set to hear the telco's challenge to a fresh Rs 9,450-crore adjusted gross revenue (AGR) demand from the Centre on September 26 (Friday). Centre earlier told the apex court, "Not opposing Vodafone Idea plea, some solution is required, government is also an equity holder. Some solution may be required, subject to Supreme Court approval."
The case stems from the Court's March 18, 2020 order, which upheld AGR dues up to FY17 as calculated by the Department of Telecommunications (DoT) and ruled out any reassessment by operators.Vodafone Idea currently has a market capitalization of approximately Rs 94,800 crore.Over the past 52 weeks, the stock has traded between a low of Rs 6.12 and a high of Rs 11.94. This recent surge marks the third occasion in the last four trading sessions that Vodafone Idea's shares have posted gains. Over the past 12 trading sessions, the stock has advanced in eight sessions, signaling a degree of renewed investor confidence after a period of volatility.Vodafone Idea's financial troubles led to the conversion of some of its AGR dues into equity, increasing the government's stake to 49%, making it the largest shareholder in the debt-laden telecom operator. This development has significant implications for the company's future governance and strategy.