Shares of debt-laden Vodafone Idea rallied 6% during early trade on Tuesday, reaching a high of Rs 17.66, following Chief Justice of India’s decision to review its plea concerning Adjusted Gross Revenue (AGR) dues.
On July 15, Vodafone Idea urgently sought the listing of its curative petition against the Supreme Court’s 2019 judgment on payments to the government.
Senior counsel Harish Salve, representing Vodafone Idea, pressed for an expedited hearing before a bench led by Chief Justice DY Chandrachud.
Legal Challenge and Financial Implications
In its curative plea, the telecom operator acknowledged the imposition of license fees by the apex court but contended that certain directions were flawed due to “patent errors of law,” leading to “a gross miscarriage of justice.”
Salve noted that Vodafone Idea had filed the curative petition last year, stressing that the company’s new investors require clarity on its exact liabilities pertaining to AGR dues.
Previous Court Proceedings and Industry Dynamics
Previously, Bharti Airtel and Vodafone Idea had requested an “open court” hearing for their curative petitions against an earlier order, which dismissed appeals for rectifying alleged arithmetic errors in the Department of Telecommunications’ calculation of AGR dues.
The Supreme Court had earlier rejected Vodafone Idea’s plea for rectification of alleged errors in the AGR dues calculation. According to the DoT, Airtel’s historical AGR dues were assessed at Rs 43,980 crore, with Rs 18,004 crore already paid. Vodafone Idea faces dues amounting to Rs 58,254 crore, having paid Rs 7,854 crore to date.
Stock Performance in Last One Year
In terms of stock performance, Vodafone Idea shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 1.54% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 8.63%, indicating a strong upward trend.
Year-to-date, Vodafone Idea shares have surged by 2%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 125% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
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