Vodafone Idea Stock Plummets Amid AGR Demand Dispute
Vodafone Idea's shares fell nearly 8% after the Supreme Court deferred a hearing on the company's plea against the Department of Telecommunications' demand for additional adjusted gross revenue. The government is a major stakeholder and efforts are underway to resolve the issue.
- Country:
- India
Shares of telecom giant Vodafone Idea witnessed a sharp decline of nearly 8% on Friday, following the Supreme Court's decision to defer a crucial hearing on October 6 concerning the company's plea to nullify additional adjusted gross revenue (AGR) demands for the period until 2016-17.
The stock concluded the day 7.60% down at Rs 8.02 on the Bombay Stock Exchange (BSE), having dipped by as much as 8.98% to Rs 7.90 at one point. The National Stock Exchange (NSE) mirrored this trend, closing at Rs 8.02, down 7.60%.
A high-profile bench, including Chief Justice B R Gavai, delayed the hearing after Solicitor General Tushar Mehta, representing the government, requested more time to explore a resolution with Vodafone Idea, in which the government holds significant equity. The company challenges the Department of Telecommunications' demand for Rs 5,606 crore, seeking a reassessment of AGR dues.
(With inputs from agencies.)
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