Vodafone Idea’s share prices are constantly increasing
Today, on 15 September, the shares of telecom company Vodafone Idea were seen in a tremendous rise. At the beginning of the business, the company’s shares jumped more than 7%. A news caused by this boom, stating that the Supreme Court is going to hear the petition challenging the company’s AGR (adjustable gross revenue) arrears on September 19. In fact, the company has challenged it in the court, justifying the AGR arrears in addition to Rs 9,450 crore. Vodafone Idea says that this demand made by the government is beyond the decision of the Supreme Court already and many money has been added to it.
What is the company’s argument on AGR
Vodafone Idea has filed a petition against a huge demand from the Central Government’s Department of Telecommunications (DOT). The government has demanded the company to recover about Rs 2,774 crore for 2018-19 as an additional AGR (Agriculture Gross Revenue). If we talk about the entire amount, then this figure reaches Rs 9,450 crore. Out of this total amount, about Rs 2,774 crore is the money that is associated with the liabilities after the merger of Vodafone and Idea, while the remaining Rs 5,675 crore is related to the earlier liabilities of Vodafone Group’s merger.
The company argues that there are many mistakes in this entire demand. He says that the government has counted some money twice and there are other errors in the calculation. Therefore, Vodafone Idea has demanded a re -investigation of these figures. The company also wants the investigation to include the years before 2017 so that the whole situation can be cleared.
The company says that it is difficult to pay such a large amount without the right account and judicial intervention is needed in this matter. This dispute of Vodafone Idea brings out the complications of the AGR issue in the telecom sector again.
What did Dot say?
There has been no official statement from the government at present, but according to the report of Economic Times, the DOT ie Telecom Department is preparing to file an affidavit in the Supreme Court in this case. The department says that this is not a new demand, but a process done to ensure the completion of the old dues. DOT also says that this demand comes under the court orders given earlier, and it should not be considered a new evaluation.
Company struggling for funding
Vodafone Idea is already a burden of heavy debt and the company is facing cash crisis. CEO Akshay Mundra recently said in the June quarter call that the company is talking to various banks for bank funding, but the banks are currently cautious due to lack of clarity on the AGR dispute.
Mundra said that the company wants to maintain its Capital Expenditure, and for this, efforts are on to raise funds from non-banking sources. He also said that his experiences from the government have been positive so far and it is expected that the AGR dispute will be resolved before the March 2025 deadline, which will make the path of funding easier.
Vodafone Idea shares are making a splash in the market
Vodafone Idea shares opened at the National Stock Exchange (NSE) at Rs 7.75 on Monday. In a short time, they reached Rs 8.20, showing a tremendous rise of about 7 percent.
In the last five days, this stock has registered an increase of about 13 percent. At the same time, if seen, investors have received a return of about 25 percent from this stock during a month. However, the performance of Vodafone Idea shares has been almost stable since the beginning of 2025.
The news of hearing in the Supreme Court on the AGR dispute has raised new hope among investors. If the decision of the Supreme Court comes in favor of the company, then it will not only reduce legal pressure, but can also open new avenues of funding.
Disclaimer: This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.