Vodafone Idea soars 6% as SC to soon hear firms plea for rectifying errors in AGR dues calculation
As the telecom company may get a respite in respect of the AGR dues outstanding, Vodafone Idea shares gathered steam in Tuesdays trade and rallied up to 5 per cent at days high.
Vodafone shares climbed in Tuesday's trade (July 16) as the Supreme Court is ready to consider listing the company's plea to correct the computational errors in AGR dues. AGR stands for adjusted gross revenue. The CJI indicated that a decision regarding the same would be taken soon.
In early trade, the stock opened higher by over 5 per cent at Rs 17.56 per share on the BSE and at the last count pared early gains and traded up by 2.76 per cent at Rs 17.14. Nevertheless, at the day's high, the stock touched Rs 17.66, a nearly 6 per cent gain over the previous close.
The senior counsel Harish Salve, representing Vodafone Idea, demanded an immediate listing of the AGR outstanding case before the bench led by Chief Justice Chandracud.
As per the Zee Business research desk inputs the petition in this regard was filed by the debt-laden telecom company in September last year. The Department of Telecom (DoT) had asked for AGR dues worth Rs 58,254 crore from the company, however according to Vodafone, the dues stood at Rs 21,533 crore.
Salve noted that the potential lenders are looking for clarity on the exact liabilities of the company.
Reportedly, the company's current AGR dues till FY24 are around Rs 70,300 crore and if the petition turns out to be successful, there can be a steep decline in AGR dues by as much as Rs 30,000-35,000 crore, added reports.
Meanwhile, Bharti Airtel stock also gained over 2.5 per cent at the day's high to Rs 1,473.80 on the development.
Zee Business Managing Editor Anil Singhvi has recommended buying Vodafone Idea futures with a stop loss at Rs 16.5 for targets of Rs 17, Rs 17.25 and Rs 17.50.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.