Published 14:48 IST, December 9th 2019
More trouble for Vodafone Idea after the telco's shares fall more than 14 per cent
Vodafone Idea shares continue to fall days after concerns over statutory dues raised by its chairman Kumar Mangalam Birla. Read complete details here.
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Vodafone Idea shares continue to fall days after concerns over statutory dues raised by its chairman Kumar Mangalam Birla. Vodafone Idea's shares fell more than 14 per cent in early tre on Monday. Vodafone Idea's stock was tring 4.91 per cent down to Rs 6.58 on BSE. In early tre, stock hit a low of Rs 6.07, declining as much as 12.28 per cent over its previous close.
On NSE, stock lost 4.35 per cent to Rs 6.60. It fell 14.49 per cent to Rs 5.90 apiece during session. Chairman of India's third-largest telecom service provider, Birla said last week that telco will shut shop if government does t provide relief on liability it faces in past statutory dues following October 24 Supreme Court order.
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Airtel, on or hand, may consolidate its position at expense of Vodafone Idea Ltd as it has better balance sheet strength to deal with eventuality of having to pay past statutory dues in case Supreme Court rejects ir review petitions, brokers said. Meanwhile, shares of Bharti Airtel gained 0.63 per cent to Rs 447.55 on BSE.
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Last month, Vodafone CEO Nick Re h raised similar concerns hinting that mounting debt on Vodafone Idea could result in company's untimely exit from India market. Re h said that government needs to ease off on payment demands to ensure a future for Vodafone-Idea Ltd.
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Supreme Court of India upheld government's position on including revenue from n-telecommunication businesses in calculating annual justed Gross Revenue (AGR) of telecom companies, a share of which has to be paid as license and spectrum fee to exchequer.
Vodafone Idea h said its ability to continue is dependent on obtaining relief from government and positive outcome of proposed legal remedy. Vodafone Idea estimated liability of Rs 44,150 crore post apex court order and me a provision of Rs 25,680 crore in Q2 2019.
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14:38 IST, December 9th 2019