New Delhi: Shares of Vodafone Idea on Friday plunged over 39 per cent after the Supreme Court dismissed review petitions of top telecom firms seeking review of its earlier order asking them to pay Rs 1.47 lakh crore in past statutory dues by January 23.
The company’s scrip tanked 39.30 per cent to Rs 3.66 on the BSE. On the NSE, it plummeted 39.16 per cent to Rs 3.65. Bharti Airtel, however, was trading in the green after initial losses of 0.83 per cent on the BSE.
The Supreme Court Thursday dismissed review petitions of top telecom firms including Bharti Airtel and Vodafone Idea seeking review of its earlier order asking them to pay Rs 1.47 lakh crore in past statutory dues by January 23 saying it did not find any “justifiable reason” to entertain them.
In a big blow to telecom sector, India’s apex court has dismissed the review petition filed by telecom companies to grant a relief on AGR liabilities, said a report by Motilal Oswal Institutional Equities.
“The verdict may put a severe burden on telcos and have unconceivable repercussions, particularly against the backdrop of VIL facing a risk of shutdown (it may result in INR1.2t debt default, large-scale job losses and subscriber churn),” the report said.
The apex court had on October 24 ruled that the statutory dues need to be calculated by including non-telecom revenues in what is known as adjusted gross revenues (AGR) of telcos.
Bharti Airtel, in its plea, had sought review of the directions on aspects of levy of interest, penalty and interest on penalty relating to AGR.
With the Supreme Court dismissing its review petition on AGR dues, Bharti Airtel on Thursday said it is disappointed, and evaluating options to file a curative petition in the matter.
“While respecting the Supreme Court’s decision, we would like to express our disappointment as we believe the long standing disputes raised regarding the AGR definition were bonafide and genuine,” Airtel said in a statement.