On September 19, shares of Vodafone Idea and Indus Towers brought a considerable impact after the Supreme Court refused telecom companies’ curative requisitions in the Adjusted Gross Revenue (AGR) dues case. Vodafone Idea’s stock plummeted by 19% to an intra-day low of Rs 10.36 on the NSE, while Indus Towers witnessed a 12% decline, striking a lower limit of Rs 384.80 on the BSE.
The Supreme Court’s judgment reaffirmed the AGR market against telecom companies, which cause investor relations. Vodafone Idea is now meeting AGR dues totaling Rs 70,300 crore, which has further affected market opinion. The court ignored the telcos’ request for re-computation of AGR rights, noting arithmetic errors in the analysis. This decision has strengthened the financial burdens facing the sector.
Indus Towers shares have had a diverse performance over the past year. In the last month, the stock had a negative recovery of 6.02%. However, in the last six months, it saw a significant increase of 65.25%. Year-to-date, Indus Towers shares have flooded by 94.18%, and over the last 12 months, they have had an amazing return of around 116.51%.
On the other hand, Vodafone Idea’s stock has shown adverse returns across different time intervals. In the last month, the stock had a negative return of 31.22%. Over the past six months, it showed a significant decrease with negative returns of 14.63%. Year-to-date figures show a trend with negative returns of 35.47%, and around the last year, the shares have shown consistent weakness with negative returns of 2%.
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The Supreme Court’s judgement has left telecom operators, particularly Vodafone Idea, grappling with hefty dues. The court dismissed curative petitions filed by the telcos, which had requested a review of the earlier decision on AGR dues and sought a listing of their petitions in an open court.
The application for an open court hearing was rejected, and all curative petitions were dismissed. This significant ruling has led to a cautious outlook among investors as the implications of the decision continue to unfold.
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