Shares in Vodafone Idea have dived upto over 3% to Rs. 9.55 per share on the BSE as the AGR case hearing is in progress in the Supreme Court.
At the outset Solicitor General To Supreme Court has said that since PSUs not in the telecom business, we are withdrawing demands against them.
Also, the honorable SC as per CNBC TV 18 report has received affidavits from telcos on securities; Govt can go back and consider the submissions by telcos.
The counsel of Vodafone Idea however says that the telecom company is in a highly precarious situation with no fresh bank guarantee to produce before the court. Parent company has written off investment, the company's losses are over Rs 1 lakh guarantees. Over Rs 10,000 cr of bank guarantees are with the DoT, should be considered as security.
But soon after hearing the Counsel, the SC observed that telecom industry was the only one in business during lockdown and there should be a provision of down payment for availing the staggered payment stream for AGR dues.
After this call, the shares of Vodafone Idea pared initial losses and was in the green with gains of 1.42% at Rs. 10.02 per share on the BSE.
Further the company's Counsel makes the following observations that after honouring debt payment of Rs. 1 trillion, paying creditors, company is not making profits for past so many quarters.
Also, the Counsel suggested that if the telco is asked to pay up the AGR fees by tomorrow, it will have to fold up.