Telecom shares jump on reports of relief package on AGR dues, Voda Idea, Airtel gain up to 38%

By: |
March 13, 2020 1:20 PM

On the basis of the documents submitted on self assessment on AGR dues by telcos, the Department of Telecommunications (DoT) will do reassessment and send revised demand notices

Vodafone Idea, Bharti AirtelVodafone Idea share prices zoomed 38 per cent to trade at Rs 5.80 per cent, while the shares of Bharti Airtel were up 10 per cent

Vodafone Idea, Bharti Airtel and Tata teleservices share prices jumped on media reports that government may come out with a relief package for telecom companies on adjusted gross revenue (AGR) issue. Vodafone Idea share prices zoomed 38 per cent to trade at Rs 5.80 per cent, while the shares of Bharti Airtel were up 10 per cent and Tata Teleservices gained nearly 5 per cent. While Reliance Communications shares dropped over 4.5 per cent to trade at Rs 0.82 apiece on BSE in Friday’s session. During the opening trade, Sensex and Nifty hit lower circuit following which trading was halted for 45 minutes. The indices staged a smart recovery since the trade has resumed. 

At 1 PM, Vodafone Idea share price was trading 30.48 per cent up at Rs 5.48 apiece, shares of Bharti Airtel were up 6.68 per cent to trade at Rs 496, while Tata Teleservices was up 4.89 per cent at Rs 2.39 apiece on BSE. While Reliance Communications shares were down 2.33 per cent at Rs 0.84 on BSE.

On the basis of the documents submitted on self assessment on AGR dues by telcos, the Department of Telecommunications (DoT) will do reassessment and send revised demand notices. Vodafone Idea owes Rs 53,039 crore according to its own assessment figures, it stands at Rs 21,533 crore. So far, the company has paid Rs 3,500 crore, and made clear that cannot pay the balance unless there is a rescue package from the government. The DoT, however, informed Parliament in a written reply that no relief package is under consideration.

According to the government, telecom companies owe Rs 1.47 lakh crore in AGR dues, and nearly Rs 25,900 crore has been received by the DoT so far. 

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