Vodafone-Idea share price
In the Indian stock market, selling is being seen on Friday, the last business day of the week. The Indian market’s major index Sensex went down by about 400 points by 11.40 am. 21 out of 30 Sensex companies are trading in red mark. But in the meantime, there is a strong jump in VI shares. Around 11.40 pm, Vodafone Idea shares rose by 4.20 per cent to Rs 8.18. But after that, in a short time, the company’s shares made a big jump and also crossed the figure of 9 percent. Let us know why VI shares have been in the midst of market decline?
In fact, after the Vodafone Idea shares have gained momentum on Friday after the Telecom Department (DOT) got ready for important hearing in the Supreme Court on the demand for AGR dues of Rs 9,450 crore. The hearing on September 19 is very important for Vodafone Idea. The company has filed a petition against the new demand of the Department of Telecommunications (DOT), stating that the demand is out of the Supreme Court’s old AGR (adjustable gross revenue) verdict. The company wants this demand of Rs 9,450 crore to be canceled, especially the arrears before 2017 should be resolved.
Vi’s statement
The company says that out of 9,450 crore, Rs 2,774 crore is associated with Vodafone Idea after merger and the remaining Rs 5,675 crore is from the liabilities of Vodafone Group before merger. The company claims that DOT calculation has mistakes and duplications, which require a detailed review to fix.
On the other hand, DOT says that this demand is not a new calculation, but is associated with finalizing the old outstanding accounts and fixing the disturbances found after financial statements. The result of this case will have a big impact on the funding plans of Vodafone Idea. Recently, the company is talking to lenders for extra funding. In the earning call of the June quarter, CEO Akshay Mundra said that the lenders are waiting for the clarity on the AGR issue. Mundra also told that the company is constantly talking to the government and if this issue is resolved, then the company will be helpful in furthering its capital experience and long-term financial strategy.
Debt on company
Vodafone Idea has a lot of debt and also has a financial stress. The company has also got relief from the government earlier, such as spectrum payment, to convert telecom sector reforms, and government arrears into equity. The company wants this dispute to be resolved before March, so that funding can be arranged on time.