Vodafone Thought, Bharti Infratel shares tank in early commerce after Supreme Courtroom dismisses evaluation plea on AGR concern
Shares of Vodafone Thought tanked practically 40 p.c, whereas that of Bharti Infratel plunged 13 p.c in early commerce on Friday after the telcos suffered a setback following the Supreme Courtroom verdict on Adjusted Gross Income (AGR).
— CNBC-TV18 (@CNBCTV18Reside) January 17, 2020
On Thursday, the apex court docket dismissed a review petition filed by telecom majors, together with Bharti Airtel and Vodafone Thought, searching for a evaluation of sure instructions of the court docket on the restoration of previous dues amounting to Rs 1.47 lakh crore from telecom service suppliers. The statutory dues are to be paid by 23 January.
Vodafone Thought recovered to Rs 4.69 per share within the late morning commerce from the early loss. The corporate’s scrip had tanked 39.30 p.c to Rs 3.66 on the BSE within the morning commerce.
On the NSE, it recovered to Rs 4.70 after the inventory plummeted 39.16 p.c to Rs 3.65 within the morning commerce.
Although Bharti Infratel plunged 13 p.c on the BSE within the early commerce, it managed to get well the early losses to some extent and was buying and selling at Rs 225.55 a share, down 17.50 or 7.21 p.c within the late morning commerce.
Equally, the corporate scrip was buying and selling at Rs 226.10 per share, down 16.95 or 6.97 p.c within the late morning commerce on the NSE.
SC rejects AGR evaluation petition
In an enormous blow to the telecom sector, the apex court docket dismissed the evaluation petition filed by telecom firms to grant a aid on AGR liabilities, mentioned 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 mentioned.
On 24 October, the Supreme Courtroom had dominated that the statutory dues have to be calculated by together with non-telecom revenues in what is named AGR of telcos.
Bharti Airtel, in its plea, had sought evaluation of the instructions on points of levy of curiosity, penalty and curiosity on penalty referring to AGR.
With the Supreme Courtroom dismissing its evaluation petition on AGR dues, Bharti Airtel on Thursday mentioned it’s upset, and evaluating choices to file a healing petition within 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 mentioned in a press release.
Vodafone Thought mentioned it’s exploring additional choices, together with submitting of a curative petition after the Supreme Courtroom dismissed its evaluation plea on AGR matter.
“…we wish to inform you that Hon’ble Supreme Court, has dismissed the review petition filed by the Company and other telecom operators. The company is exploring further options, including filing of a curative petition,” Vodafone Thought mentioned in a inventory trade submitting.
Vodafone Thought, reeling below huge debt of round Rs 1.17 lakh crore, had earlier cited acute monetary stress on the corporate behind the choice to lift cellular name and information prices.
— With PTI inputs
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