Vodafone Idea share price jumped over 8% to a four-month high on Monday, led by heavy volumes. Vodafone Idea shares rallied as much as 8.21% to ₹ 8.30 apiece on the BSE.
The rally in Vodafone Idea shares came after reports said that the Supreme Court will hear the telecom operator’s petition challenging additional adjusted gross revenue (AGR) dues of ₹9,450 crore on Friday, September 19.
Company’s Petition
Vodafone Idea has approached the apex court seeking to quash the Department of Telecommunications’ (DoT) demand, arguing that the revised calculation exceeds the scope of the Supreme Court’s 2019 ruling on AGR liabilities. The company, through a writ petition filed on September 8, contended that certain amounts have been counted twice and urged a recalculation of dues, beginning from the pre-FY17 period, reports said.
DoT’s Stand
According to a CNBC-TV18 report, the DoT has justified the additional demand as a gap in prior accounting, rather than a reassessment or recalculation. An affidavit filed before the Supreme Court argued that the dues arose from the completion of financial accounts for earlier years.
The additional demand includes ₹2,774 crore for FY18-19, pertaining to the post-merger entity Vodafone Idea, and ₹5,675 crore linked to pre-merger Vodafone Group liabilities, the report added.
The outcome of the Supreme Court hearing will be crucial for Vodafone Idea, which continues to battle financial stress even as it seeks to raise funds and strengthen its market position.
Vodafone Idea share price has rallied 35% in one month, and just 3% on a year-to-date (YTD) basis.
At 1:15 PM, Vodafone Idea share price was trading 8.21% higher at ₹8.30 apiece on the BSE.