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Telecom stocks faced selling pressure during the September 19 trade as the Supreme Court rejected telecommunication companies’ plea for the re-computation of adjusted gross revenue (AGR) dues.
Shares of debt-laden telecom operator Vodafone Idea crashed over 15 percent. At 12.05 pm, Vi shares were quoting Rs 10.96 apiece on the NSE, while Indus Towers’ stock price plummeted 14 percent to Rs 367.25.
However, Bharti Airtel shares were quoting Rs 1,697 apiece, up 3 per cent on the NSE.
Vodafone Idea’s AGR dues currently stand at Rs 70,300 crore.
The Supreme Court in its verdict mentioned that it has gone through the curative petitions and connected documents, adding that no case has been made out by the telecom companies. Therefore, the Supreme Court dismissed the petitions. Telecom companies had claimed arithmetic errors in computation of the AGR dues.
For Vodafone Idea, the IIFL Securities analyst said that it will now be closely monitored whether Vodafone Idea can go ahead with its debt raising plan in light of the unfavourable Supreme Court verdict and that this debt fund raise will be crucial for the company to continue with its capex plans.
According to IIFL Securities, Bharti Airtel currently owns Rs 36,000 crore in AGR dues.
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