Vodafone Idea Shares Slide 10% After Dues Waiver Denied, Telco Turns to SC

Vodafone Idea shares fell nearly 10% on the National Stock Exchange after reports emerged that the telecom company sought relief from the Supreme Court to challenge the government’s rejection of its request to waive more than $5 billion in interest and penalties related to statutory dues.

According to a report by Reuters, the Department of Telecommunications (DoT) on April 29 denied Vodafone Idea CEO Akshaya Moondra's plea, seeking relief on interest and penalties tied to outstanding dues totalling $9.76 billion. “The request cannot be considered,” the communications ministry reportedly said in a statement.

At 12:15 pm, Vodafone Idea shares were trading at Rs 7.13, down by 3.26% on the NSE.

Last week, Vodafone Idea took the matter to the Supreme Court after its plea was rejected. The telecom operator urged the court to direct the government to act in the 'public interest'. The matter is likely to be heard later this week.

The debt-laden firm has been under immense pressure since 2019 after the apex court broadened the definition of adjusted gross revenue (AGR). Following this move, Vodafone Idea witnessed a surge in its liabilities. It is also worth mentioning that the government has, time-to-time stepped in to provide aid to the telecom firm by converting dues into equity, eventually raising its stake in the company to 49%.

Vodafone Idea Share Price

In the last 6 months, Vodafone Idea shares have remained largely flat, albeit in the green territory. So far this year, the shares of the telecom firm have declined by over 11.24% on the National Stock Exchange. The drop has been even sharper on an annual basis, with the stock declining over 47% on the exchanges.

Currently, the stock is down by over 63% from its 52-week high of Rs 19.18 on NSE. Vodafone Idea's AGR dues stood at Rs 83,400 crore as of March 31, according to a report by the Economic Times.