Thu Sep 19 13:09:42 UTC 2024: ## Vodafone-Idea Shares Plunge 20% After Supreme Court Rejects AGR Plea
**New Delhi:** Telecom stocks, particularly Vodafone-Idea and Indus Tower, witnessed a significant decline on Thursday following the Supreme Court’s dismissal of a curative petition filed by telecom companies challenging the AGR (Adjusted Gross Revenue) dues verdict.
Vodafone Idea’s share price plummeted by 20% to reach a low of ₹10.05. The company had hoped for a recalculation of its AGR dues, but the Supreme Court denied their request, leaving them obligated to pay the full amount.
The companies had argued that there were errors in calculating the AGR dues, which amounted to over ₹1 lakh crore. Vodafone-Idea alone had anticipated a relief of ₹30-40 crore, which could have boosted its share price by ₹5-6.
The market reacted negatively to the verdict, with Vodafone-Idea shares experiencing a continuous fall since the August 30th hearing. Analyst sentiment had also been pessimistic, with Goldman Sachs issuing a “sell” recommendation at ₹2.5.
The decision eliminates the optimism surrounding the AGR case and brings the share price down to the FPO price of ₹11. Future performance will depend on the company’s ability to recover. However, FPO investors are yet to suffer losses, and those who bought in the ₹15-17 range can consider holding onto their shares.
This latest ruling marks a major setback for the telecom industry, which had sought relief from the substantial financial burden imposed by the AGR calculations. The Supreme Court’s decision to uphold its previous judgment underscores its commitment to regulatory compliance and maintaining the financial health of the sector.
First Piper 