Vodafone Idea shares in focus ahead of key AGR hearing in Supreme Court – News Air Insight

Shares of Vodafone Idea are likely to remain in focus on Friday, September 19, as the telecom operator braces for a crucial Supreme Court hearing on the Department of Telecom’s (DoT) demand of Rs 9,450 crore in additional adjusted gross revenue (AGR) dues.

The hearing, tentatively scheduled for September 19, is critical for the financially stressed telco, which has contested the DoT’s demand, arguing it goes beyond the scope of the apex court’s earlier verdict on AGR liabilities. Vodafone Idea has filed a plea seeking to quash the fresh demand and has called for a reconciliation of dues, particularly those dating back to the pre-FY17 period.

According to the company, of the total Rs 9,450 crore sought, around Rs 2,774 crore pertains to the post-merger Vodafone Idea entity, while the remaining Rs 5,675 crore relates to pre-merger Vodafone Group liabilities. The telco has claimed that the DoT’s calculations contain duplication and errors that must be corrected through a detailed reconciliation process.

The DoT, in its reply, has maintained that the demand is not a reassessment or recalculation but stems from finalising pending accounts and identifying gaps that emerged after financial statements were closed.

The case outcome is expected to directly influence Vodafone Idea’s funding plans. In recent months, the company has been in talks with lenders for additional capital. During the June quarter earnings call, CEO Akshaya Moondra said, “lenders were waiting for clarity on the AGR issue before proceeding with funding plans.”

Moondra also noted that the company has been in regular dialogue with the government and that a resolution would enable it to move ahead with capital expenditure and its long-term financial strategy.Given Vodafone Idea’s heavy debt and ongoing financial stress, the stakes are high. The telco has previously benefited from government relief measures, including spectrum payment deferments, telecom sector reforms, and conversion of government dues into equity. The company has urged that the current dispute be settled before March to allow timely funding arrangements.Also read: India’s $3.5 trillion gold holdings show it’s far from a ‘dead economy’: Gurmeet Chadha

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)