‘Supreme’ relief to Vodafone Idea on AGR
Monday brought a big relief for the telecom company Vodafone Idea (Vi), which is facing financial crisis. The Supreme Court has given permission to the Central Government to reconsider an important matter related to the Adjusted Gross Revenue (AGR) dues of the company. The court accepted that this matter falls within the ‘policy jurisdiction’ of the government. This decision is considered very important for the future of Vodafone Idea, which has been struggling with its liabilities for a long time.
‘Policy’ avenues open for the government
The Supreme Court on Monday clarified that reassessment of AGR dues is an issue on which it is the job of the central government to take the final decision. This comment of the court has opened an important ‘policy window’ for the Centre. This means that the government can now find a new way at the policy level to provide relief to the company. This will strengthen Vodafone Idea’s efforts to reduce its huge dues burden.
‘New hope’ amid financial crisis
This news is no less than a lifesaver for Vodafone Idea. The company has been facing huge financial pressure for a long time. Due to the burden of this dues, it was a big challenge for the company to run its operations smoothly and raise fresh investment from the market. This relief from the Supreme Court can help the company sustain operations and win the trust of investors.
The market welcomed the decision
The effect of this stance of the Supreme Court was immediately visible on the stock market also. As soon as the news came, there was a sharp rise in the shares of Vodafone Idea. The shares, which were earlier trading at a loss, rose by 9.25% after this news. Currently the shares are trading at Rs 10.49. This positive reaction of the market shows that investors are seeing this decision as a big step in favor of the company.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.