Telecom company Vodafone Idea suffered a major setback on Thursday due to a Supreme Court decision. The company's stock fell by about 15 percent. Investors lost a huge amount today. Actually, the Supreme Court decided to uphold the adjusted gross revenue decision against telecom companies and to maintain the amount of AGR demand, which had an impact on the stocks of telecom companies. According to a CNBCTV18 report, the Supreme Court mentioned in its decision that it has seen the curative petitions and related documents, and also said that no case has been made out by the telecom companies. Telecom companies had claimed arithmetical errors in the calculation of AGR dues.
Share likely to rise for Bharti Airtel
According to the news, the expert says that Vodafone Idea could have gained ₹ 5 per share if it got relief from the Supreme Court, but now the company's cash flow situation will become more difficult in view of the adverse decision. He also says that due to Vodafone Idea not getting relief, he sees the possibility of further market share gain for Bharti Airtel. Now it will be seen whether Vodafone Idea can proceed with its debt raising plan in view of the adverse decision of the Supreme Court and raising this debt fund will be important for the company to continue its capital expenditure plans.
Vodafone Idea shares
According to IIFL Securities, Bharti Airtel currently has ₹36,000 crore as AGR dues. Vodafone Idea stock has fallen below its follow-on public offer price of ₹11. The stock was seen trading above ₹11 in the afternoon.
A few days ago, brokerage company Goldman Sachs said that although Vodafone Idea's (VIL) recent capital increase is positive, it is not enough to stop the decline in its market share. The brokerage company has forecast a loss of three percent in market share for the company in the next three-four years.
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