Vodafone Idea stock up 2% as Supreme Court agrees to hear AGR dues plea

Shares of Vodafone Idea rose 22 percent in one year, compared to Nifty 50's gain of 12.7 percent during the same time period.

Vodafone Idea shares gained 2.2 percent in trade on October 10. The telecommunications player filed a curative petition in the Supreme Court, regarding its Adjusted Gross Revenue (AGR), with the apex court agreeing to consider the matter. Both Bharti Airtel and VI have challenged the AGR levied, stating that there are calculation errors in the Supreme Court's 2019 judgment determining the dues. VI added that the dues and interest levied are so heavy that it challenges the existence of the company.

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"The company is already on the verge of a financial crisis, which threatens its very existence, and the judgment passed by this Hon’ble Court, prohibiting even the correction of clerical and arithmetical errors in the demands, foreclosing any reduction of the amount payable by thousands of crores of rupees and further imposing a penalty and interest on penalty, is highly unjust," said Vodafone Idea.

Also read: Vodafone Idea warns of existential threat due to AGR penalty and interest in SC curative petition

VI added that the penalty and interest on penalty are higher than the principal amount itself, which is why the telco is appealing for a reconsideration of the judgment.

Vodafone Idea stock technical details

Shares of Vodafone Idea gained 22 percent in one-year, compared to Nifty 50's rise of 12.7 percent. Over the past six months, the share price has surged 80.5 percent. The counter sees low volatility, according to its one-year beta of 0.93. VI shares are trading under their 5- and 10-day moving averages, but over their 20-, 50-, 100- and 200-DMAs.

According to the June quarter shareholding data, the promoters own 50.4 percent in the company. FIIs maintained a low stake of 2.3 while DIIs held 33.9 percent in the firm. The public had a 13.4 percent stake in VI.

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