Vodafone Idea has called an emergency meeting with investors and analysts on September 23 to address ‘recent events’, the telecom giant revealed in a stock exchange filing. The meeting comes just a day after the Supreme Court dismissed petitions from several telecom operators, including Vodafone Idea and Bharti Airtel, concerning the re-computation of Adjusted Gross Revenue (AGR) dues, reported The Economic Times.
The ruling marks a major blow to the already financially strained Vodafone Idea, which owes the Indian government thousands of crores in fees and charges. The company, struggling under massive debt, is facing heightened uncertainty following the top court’s decision.
“Vodafone Idea Ltd will host a conference call with its senior management on Monday, September 23, 2024, from 02.30 pm to 03.00 pm IST to provide updates on recent developments,” the company stated. The call will include Vodafone Idea Chief Executive Akshaya Moondra and Chief Financial Officer Murthy GVAS, supported by other senior executives.
Shares of Vodafone Idea plummeted following the Supreme Court’s ruling, dropping below Rs 10 to hit a low of Rs 9.79 on the Bombay Stock Exchange earlier in the day. However, by the close of trading, the stock managed to recover slightly, ending 1 per cent higher at Rs 10.48, even as the broader BSE Sensex surged by 1,400 points to a record high.
Vodafone Idea, a joint venture between the UK’s Vodafone Plc and India’s Aditya Birla Group, has been grappling with a monumental financial burden. As of March 31, 2024, the company owes a staggering Rs 2,03,430 crore to the government, including Rs 1,33,110 crore in deferred spectrum payments and Rs 70,320 crore in AGR liabilities. The telco had pinned its hopes on court relief for these payments but now faces the prospect of navigating further financial turbulence.
The rejection of the AGR curative plea has also raised concerns about Vodafone Idea’s ongoing efforts to raise Rs 25,000 crore through debt. Despite the setback, reports suggest that the company’s discussions with lenders and vendors remain on track. According to sources familiar with the matter, the outcome of the court ruling was not included in the business plan shared with lenders. Techno-economic assessments from lenders reportedly remained positive, and the curative ruling was not considered in their evaluations.
First Published: Sep 20 2024 | 5:29 PM IST
By Companies
Source: Companies