Vodafone Idea has called investors and analysts for a meeting with its senior management on September 23 on ‘recent evens’, the telco said. This comes a day after the Supreme Court rejected a batch of pleas by various telecom companies including Vodafone Idea and Bharti Airtel, in the re-computation of Adjusted Gross Revenue (AGR) case.
The ruling is seen to be a big blow for he telcos, and partcularly cash-strained Vodafone Idea that owes thousands of crores of rupees to the government in fees and charges.
“Vodafone Idea Limited will host a conference call with its senior management on Monday, September 23, 2024 from 02.30 PM to 03.00 PM, Indian Standard Time to provide an update on the recent developments,” the company said in an exchange filing.
The company’s representatives for the conference call will include Akshaya Moondra, Chief Executive Officer, and Murthy GVAS, Chief Financial Officer, along with support from the senior management team.
Shares of debt-laden telecom giant Vodafone Idea had crashed following teh SC ruling and it had dropped below the Rs 10 mark to a low of Rs 9.79 on the BSE today, as disappointment over the AGR case persisted. However, the shares ended 1% higherat Rs 10.48 in Mumbai trading, while the broader BSE Senex hit a record high and soared about 1,400 points.
Vodafone Idea, the joint venture between UK’s Vodafone Plc and India’s Aditya Birla Group, in which the Indian government holds a 23.8% stake, may find itself back at square one. As of March 31, 2024, the company owed a staggering Rs 2,03,430 crore to the government. This includes Rs 1,33,110 crore in deferred spectrum payments and Rs 70,320 crore in AGR (adjusted gross revenue) liabilities. The telco had hoped for court relief on these payments, but it remains entangled in financial uncertainty.
There are concerns also about the telco facing big challenges in its efforts to raise Rs 25,000 crore via debt after the Supreme Court rejected telecom operators’ curative plea on AGR dues.
However, Vodafone Idea’s discussions with lenders and vendors remain on track, despite the setback in its curative petition on the adjusted gross revenue (AGR) issue in the Supreme Court, ET reported citing people familiar with the matter. Sources say the petition’s outcome was not factored into the company’s business plans or negotiations. One insider mentioned that the petition was not considered in the business plan presented to lenders. The techno-economic assessments conducted by the lenders were also positive and made no reference to the curative ruling.
