Fri Sep 20 16:16:32 UTC 2024: ## Vodafone Idea Plunges to 52-Week Low After Supreme Court AGR Ruling
**Mumbai, India:** Vodafone Idea’s share price plummeted over 5% on Friday, hitting a 52-week low and extending losses from the previous session. The company’s stock has fallen by more than 24% in the last two days following the Supreme Court’s unfavorable ruling on the Adjusted Gross Revenue (AGR) case.
The apex court upheld its 2019 decision to include non-telecom revenue in the AGR calculation for licence fees and spectrum usage charges, a significant blow for the debt-ridden telecom operator.
Nuvama Institutional Equities stated that the verdict is a major setback for Vodafone Idea, but the sharp 20% correction on Thursday largely reflects the increased liability over and above market expectations. The brokerage firm believes the focus now shifts to the company’s operational performance, including subscriber loss, tariff hike impact, and capital expenditure.
Nuvama maintained that Vodafone Idea requires three key factors to survive: capital infusion, tariff hikes, and liabilities waiver. While the first two have been met, the liabilities waiver appears unlikely following the court’s decision.
The firm adjusted its target price to reflect the full AGR dues liability of ₹70,000 crore, maintaining its ‘Hold’ rating on Vodafone Idea shares with a revised target price of ₹11.5 apiece.
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