Vodafone Idea shares rise nearly 4%
Bharti Infratel shares too rallied up nearly 14 per cent on the bourses.
Vodafone Idea (VIL) shares nosedived by 20 per cent, while the stock price of Bharti Airtel surged on Tuesday after the Supreme Court’s decision on adjusted gross revenue (AGR); the telecom operators will have to clear their dues in 10 years time with a 10 per cent upfront payment by March 31, 2021.
Around 2.42 p.m., Bharti Airtel shares on the BSE were trading at Rs 548.85, higher by Rs 34.90 or 6.79 per cent from its previous close.
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Vodafone Idea shares on the BSE were trading at Rs 9.03, lower by Rs 1.16 or 11.38 per cent from its previous close.
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VIL which owes more than Rs 50,000 crore in AGR-related dues is in a financially weaker position than the other telcos and has time and again said that it would have to shut shop if it were to pay the dues in one go.
Soon after the Court’s decision, the stock crashed despite halt in trading on two occasions after the stock hit the lower circuit. At 12:20 pm, the stock was down 19.92 per cent.
Other major players, however, reacted positively to the verdict. Bharti Airtel which had also sought 15 years to pay its dues hit the day’s high, rising 5.60 per cent. At 12:20 pm, the stock had pared some gains but was still 4.87 per cent in the green.
Telecom companies will have to face contempt proceedings along with a penalty in case of default in payment of annual instalment.
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