Vodafone Idea shares bounced back by nearly 9 per cent, in a relief rally of sorts, a day after the Supreme Court gave telecom companies 10 years to clear their adjusted gross revenue (AGR) dues, thus ending the uncertainty over dues and re-payment tenure. At 10:45 am, the shares of Vodafone Idea were trading at Rs 9.71, up 8.5 per cent, on the BSE. The shares had ended lower by 13 per cent at Rs 8.9 on the BSE, post the court verdict, on Tuesday.
A three-judge bench of the Supreme Court had directed the telecom companies to pay 10 per cent of the dues by March 31 next year. It further said the 10-year timeline for payment of AGR dues will begin on April 1, 2021 and the payments will have to be made in instalments till March 31, 2031.
The ruling would have come as a relief for Vodafone Idea, which has been struggling with mounting losses. In fact, Vodafone Idea chairman Kumar Mangalam Birla had warned in December that the company was headed towards insolvency.
Meanwhile, the board of Vodafone Idea will be meeting on September 4 to consider fund-raising plans. The company plans to raise capital in one or more tranches by way of a public issue, preferential allotment, private placement, including a qualified institutions placement.
Among the other telecom stocks, Bharti Airtel gained 1.9 per cent to Rs 557.25.
The BSE Sensex was trading at 38,852, lower by 55 points or 0.13 per cent and the Nifty was at 11461, down 9 points at the time.