Telecom player Vodafone Idea's share price traded in the red on August 30, as the Supreme Court considers the curative petitions by Bharti Airtel and Vodafone Idea in the Adjusted Gross Revenue (AGR) case.
At 11.10 am, Vodafone Idea stock was quoting Rs 16.2, down by around half a percent on the NSE, compared to the previous session's closing price.
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Vodafone Idea's curative petition in the AGR case seeks three main reliefs: correcting arithmetic and clerical errors in the AGR demand; requesting the penalty be limited to 50 percent of the shortfall; and revising the interest rate on the penalty to 2 percent above the State Bank of India's prime lending rate.
International brokerage Citi reiterated its Buy call on Vodafone Idea, noting that the Supreme Court's decision could be a material development on the long-pending matter. The brokerage maintained its price target of Rs 22 per share, indicating an upside of around 38 percent.
Citi added that the current target does not factor in any reduction in the firm's AGR dues. In the case of AGR dues falling, the potential benefit to Vodafone Idea's share price could be around Rs 4-5 per share, or even higher.
In an exclusive interaction with Moneycontrol, Telecom Minister Jyotiraditya Scindia on August 29 has said the government will not interfere in the operations of Vodafone Idea. The Government of India owns a 23.8 percent stake in the company. "Vodafone Idea has its own professional management, and therefore, what happens in the financial and operational workings of a company is their business and not our business as a ministry," the minister said.
The stock is also in focus ahead of MSCI's August rejig that will take place later on August 30, where seven stocks are expected to be included into the MSCI India index, including Vodafone Idea, which may lead to passive flows of around $285 million, according to analysts.
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