Thu Sep 19 16:09:07 UTC 2024: ## Vodafone Idea Shares Plunge After Supreme Court Rejects AGR Appeal

**New Delhi:** Vodafone Idea’s shares plummeted by 19% on Tuesday after the Supreme Court rejected the company’s appeal against adjusted gross revenue (AGR) dues. The ruling dealt a major blow to the already struggling telecom company, causing its market value to shrink by nearly ₹13,500 crore within an hour of the announcement.

The AGR issue, a long-standing dispute between the government and telecom companies, stems from the calculation of revenue used to determine license fees and spectrum usage charges. The government argues that the AGR should include all revenue, including non-telecom sources, while telecom companies maintain that it should only include revenue generated from core telecom services.

In 2019, the Supreme Court ruled in favor of the government, forcing telecom companies to pay substantial AGR dues. Vodafone Idea, which currently owes approximately ₹70,300 crore, had filed a curative petition, arguing that the government had made errors in calculating the AGR dues. However, the court dismissed the petition, leaving the company facing a massive financial burden.

The court has granted the companies a 10-year period to pay the AGR dues, but the latest ruling casts a shadow over Vodafone Idea’s future. Analysts believe the company’s financial situation is precarious, with declining customer numbers and increasing debt.

**Expert opinions:**

* Goldman Sachs predicts that Vodafone Idea’s cash flow will remain negative until 2031 and forecasts a potential 83% drop in share price to ₹2.5.
* Tradebulls’ Sachchitanand Uttekhar expects further decline in share price, potentially reaching ₹7.
* Anand Rathi’s Jigar Patel views the chart as weak and advises investors to avoid Vodafone Idea shares.

**The future remains uncertain for Vodafone Idea. The company’s ability to survive and thrive amidst the AGR burden and mounting financial challenges is a major question mark.**

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