CLSA has raised Vodafone Idea AGR risk estimate to Rs 12.40 per share.
Vodafone Idea share price plunged nearly 9 percent in the early trade on July 21, a day after a Supreme Court (SC) hearing on the payment of adjusted gross revenues (AGR) dues by telecom companies.
Vodafone Idea, Bharti Airtel and Tata Teleservices, which have the highest AGR dues as per the Department of Telecommunications (DoT) assessment, have requested the court to allow staggered payments. The court has reserved its decision on the timeline of payments.
The three-judge bench told that the telecom companies that there was no room to reopen the case as the dues were mentioned in the AGR judgment.
Vodafone Idea needs to secure AGR dues payable, the Bench said.
The company has paid Rs 7,854 crore so far and the balance is Rs 50,399 crore.
Mukul Rohatgi, the counsel representing Vodafone Idea said, the company's revenue was spent on liabilities, tax and dues. The total revenue of over 10 years was Rs 6.27 lakh crore, of which Rs 4.95 lakh crore was spent on expenses.
The company had no assets left other than the spectrum, Rohatgi said, adding that the Goods and services tax (GST) refunds of Rs 8,000 crore accrued to the Vodafone could be retained by the government towards the payment.
CLSA raised Vodafone Idea AGR risk estimate to Rs 12.40 per share and downgraded the stock to "underperform" from "buy".
It also cut the target price to Rs 9.20 from Rs 14 per share and expect the company's AGR payment to jump to 30 percent from 5 percent of EBITDA over FY21/22, reported CNBC-TV18.
At 0917 hours, Vodafone Idea Limited was quoting at Rs 8.54, down Rs 0.50, or 5.53 percent on the BSE.The share had gained 117 percent in the last three months.