Vodafone Idea pumps Rs 1,000Cr in AGR dues, sees 9% surge in shares
Author : Pankaj Singh | Published Date : 2020-07-20
Indian telecom operator, Vodafone Idea Ltd. has witnessed a 9% surge in shares following the payment of Rs 1,000 crore to the Government of India as part of its statutory dues. The move comes prior to the Supreme Court hearing on the AGR (adjusted gross revenue).
With the recent spending, Vodafone Idea has paid a total of Rs 7,854 crore towards dues on AGR. Previously, the company had pumped Rs 6,854 crore in three tranches.
According to sources, the Supreme Court said in its last hearing on the AGR matter that private telecom operators, which include Bharti Airtel and Vodafone Idea, must make payments to ‘show their bonafide’, develop a ‘reasonable payment plan’, and file books of accounts for the past decade.
It is vital to mention that Vodafone Idea has lost around 64 lakh subscribers in India. Commenting on which, financial services firm Motilal Oswal Securities said that loss of subscribers by Vodafone Idea is majorly given to its sub-par network qualities as well as its survival uncertainty, which currently depends on the Supreme Court’s verdict to grant an extended moratorium period on AGR liability.
However, as an interim relief, telecom tribunal recently stayed Trai's direction to the telco to withhold a strategy that guarantees priority 4G network to its premium customers. Although, TDSAT (Telecom Disputes Settlement and Appellate Tribunal) said Trai can go ahead with its inquiry and permit a final order in line with the law at the earliest.
Reportedly, in 2019, statutory liabilities arose after the Supreme Court upheld the Indian government's position on considering revenue from non-core businesses in calculating yearly AGR of telecom firms, a part of which is paid as spectrum and license to the exchequer.
Currently, Vodafone Idea is facing around Rs 58,000 crore demand in statutory dues, after the Supreme Court ordered non-telecom revenues to also be included in evaluating statutory dues.
About Author
Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
Related News
Bayers new CEO initiates management job cuts to accelerate decision-making
Bayer newly appointed CEO, Bill Anderson, has reportedly unveiled plans to streamline the companys management structure in a bid to expedite decision-making processes. This marks the first step in a broader effort to transform the embattled German company, which has been under pressure from inv... Read More>>
Smurfit Kappa in Merger Talks with WestRock worth $19 Billion
Smurfit Kappa, a prominent player in the packaging industry, is reportedly engaged in merger discussions with its US counterpart, WestRock. This prospective merger has the potential to create a cardboard box-making powerhouse boasting a market value approaching $19 billion (€17.8 billion). Furt... Read More>>
RBC plans job cuts to take on anticipated economic softening
The Royal Bank of Canada is reportedly planning to reduce its workforce by approximately 1,800 jobs as part of cost-cutting measures, on account of the anticipated upcoming economic landscape. This decision comes after the country's largest bank surpassed analysts' predictions for the third ... Read More>>