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.
