Vodafone-Idea shares gain over 4% ahead of decision on AGR dues
by BusinessToday.In · Business TodayVodafone Idea stock price trades higher than 5, 20, 100 and 200-day but lower than 50-day moving averages. M-cap of the telecom major stood at Rs 26,120.47 crore as of closing session today
Vodafone-Idea shares were trading 4% higher on Monday's early session ahead of the Supreme Court's decision on the issue of tenure of payment of adjusted gross revenue (AGR) dues.
The stock price of Vodafone Idea opened at Rs 9 today and later gained 4.07% to the intraday high of Rs 9.19 against the earlier closing value of Rs 8.83 on BSE today. The stock also touched an intraday low of Rs 8.82.
Vodafone Idea stock price trades higher than 5, 20, 100 and 200-day but lower than 50-day moving averages. M-cap of the telecom major stood at Rs 26,120.47 crore as of closing session today.
Stock of Vodafone has risen 4.24% in one week and almost 70% since last year. Vodafone stock has climbed 47% since the beginning of 2020.
Shares of struggling telecom major Vodafone-Idea closed 2.94% higher at Rs 9.09 apiece on BSE today. Till now, Vodafone Idea has paid Rs 7,854 crore of its Rs 50,399 crore dues.
In its last hearing, held in July, the Supreme Court had reserved its order on a petition related to allowing telcos to make staggered payments of AGR over a 20-year period. The Supreme Court had said there was "no going back" on the Department of Telecommunications (DoT) demand on the AGR issues and it would only consider the timeline. The court had also said that private telecom companies including Vodafone Idea must come out with a reasonable payment plan and make a minimum payment to "show their bonafide".
During the last hearing, Vodafone had revised the demand to 15 from 20 years after the Supreme Court said that telcos should seek a reasonable time for a payout as 20 years is too long a period.
As per market analysts said if Supreme Court approved the desired timeline to repay AGR dues, then this will be positive for Vodafone, Bharti Airtel and banks also, those who have given loan to telecom companies.
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