The Supreme Court’s decision on adjusted gross revenue (AGR) dues triggered sharp reactions among telecom stocks as Vodafone Idea saw its share price nosedive by 20 per cent, while other players of the industry moved higher.
Vodafone Idea Limited which owes more than ₹ 50,000 crore in AGR-related dues and has been slipping into debt over the last few quarters had sought 15 years to pay its part. Soon after the decision came, the stock crashed despite trading being halted twice after it hit 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.
Out of business companies Reliance Communications (RCom) which also owes AGR dues to the government, too witnessed upticks. RCom edged up 5 per cent, while Reliance Industries which owns the subsidiary Reliance Jio was gaining nearly a per cent. The Tata Teleservices stock, on the other hand was down a per cent.
Overall, the BSE Telecom index was up 2.34 per cent. The broader market was gaining about 0.75 per cent.
The top court on Tuesday, allowed the telecom companies to pay their adjusted gross revenue (AGR) dues dues in a staggered manner spread over 10 years. The Supreme Court bench led by Justice Arun Mishra delivered the judgement on the repayment of AGR dues by the telecom companies. The top court also directed the telecom companies to pay 10 per cent of the dues by March 31, 2021.