This telecom stock tanked over 20% to hit record low on AGR concern

By: |
November 14, 2019 6:39 PM

The shares were under stress amid reports that the government has issued a notice to the telcos to pay their revenue share dues within three months as directed by the Supreme Court.

Vodafone Idea plunged 20.27 per cent to close at Rs 2.95 on the BSE. During the day, it tanked 21.62 per cent to its record low of Rs 2.90.

On concerns over adjusted gross revenue (AGR), shares of telecom major Vodafone Idea nosedived over 20 per cent on Thursday. The shares were under stress amid reports that the government has issued a notice to the telcos to pay their revenue share dues within three months as directed by the Supreme Court. The department of teleco-mmunications (DoT) on Wednesday sent out notices to all the telecom operators and internet service providers to pay their licence fee and spectrum usage charge dues to the government as per the definition of what constitutes adjusted gross revenue given by the Supreme Court in its order dated October 24. Bharti Airtel also fell 4.88 per cent to Rs 350.50.

“It is submitted that the Supreme Court while delivering the judgment dated 24.10.2019 also ordered as follows: We give three months’ time to deposit the amount, which is due and compliance be reported,” Financial Express reported citing the DoT’s letter issued on November 13.

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Vodafone Idea plunged 20.27 per cent to close at Rs 2.95 on the BSE. During the day, it tanked 21.62 per cent to its record low of Rs 2.90. The company’s market valuation declined Rs 2,155.06 crore to Rs 8,476.94 crore on the BSE. Shares of Bharti Airtel also fell 1.59 per cent to close at Rs 362.65. The Supreme Court in its last month’s ruling said, “We give three months’ time to deposit the amount, which is due and compliance be reported.

Meanwhile, Sensex and Nifty on Thursday ended higher after swinging between gains and losses during the day as participants hoped for further easing of repo rate to boost consumer sentiment amid macro-economic challenges.

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