Vodafone Idea, the crisis-ridden company which in the previous day's traded ended in the green, in today's session (July 23, 2021) was knocked down by as much as 9.73% and at day's low even reached the price of Rs. 7.90 per share against the previous close of Rs. 9.25 per share.
Notably in the AGR (Adjusted gross revenue) case, the Honourable Supreme Court has dismissed telecom companies' plea to recalculate their dues. The matter was taken by a bench of Justices LN Rao and Hrishikesh Roy on July 23. Last year, the SC gave time duration of 10 years to telecom providers for paying off Rs. 93,520 crore in AGR dues. Justice Rao observed the earlier hearing and said no reassessment can be done.
In order to make their appeals more powerful, Vodafone iterated that it was about to go under owing to dues amounting to Rs. 1.8 trillion while Airtel complained of duplication, unaccounted payments, and disallowed deductions.
On the move, Bharti Airtel and Tata Teleservices ended mixed. Bharti Airtel ended in the green by 0.29% at Rs. 548.30 and Tata Tele ended lower by close to 5% at Rs. 37.75 per share.
It is to be noted that after scaling an all time high of Rs. 123 in the year, the stock has dived to a 52-week low price of Rs. 7.60 destroying enormous investor wealth.
It is viewed that today's decision will severly impact the cash starved and debt laden company, and render its survival even more difficult. For the March ended quarter, the company posted loss to the tune of Rs. 6985 crore. The company has been losing for 11 quarters now. But Vodafone Idea has got a nod from the DoT for its Rs. 15,000 crore FDI proposal and this money shall come to rescue the financially distessed telco.