Vodafone Idea shares plunge 17%, Airtel up 4% post AGR verdict

Mumbai, Sep. 1 (IANS): Vodafone Idea shares plunged over 17 per cent, while the stock price of Bharti Airtel surged over 4 per cent on Tuesday after the Supreme Court said that the telecom operators will have to clear their dues in 10 years time with a 10 per cent up front payment by March 31, 2021.

Around 12.30 p.m., Bharti Airtel shares on the BSE were trading at INR 537.75, higher by INR 23.80 or 4.63 per cent from its previous close.

Vodafone Idea shares on the BSE were trading at INR 8.40, lower by INR 1.79 or 17.57 per cent from its previous close.

The top court said that every year by February 7, payment has to be made and telecom companies will have to face contempt proceedings along with a penalty in case of default in payment of annual instalment.

The Centre had sought a 20-year timeline for the adjusted gross revenue (AGR) payments, and both Vodafone Idea and Bharti Airtel had sought a 15-year timeline. Vodafone Idea is in a financially weaker position than the other telcos and has time and again said that it would have to shut shop if it were to pay the dues in one go.