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Mumbai: Shares of Vodafone Idea Ltd slipped 8.85% on Tuesday after the Supreme Court on Monday reserved its order on timeline of staggered payment of adjusted gross income (AGR) associated dues.
At 12:05 pm, Vodafone Idea fell 7.30% to ₹8.38 on the BSE, in comparison with 1.12% rise to 37839.91 within the benchmark index, Sensex.
The apex courtroom expressed doubt over Vodafone Idea’s capability to clear the dues, asking the way it may “rely” on the corporate for payment over a interval given its monetary place. The telco has sought 15 years to pay the dues versus 20 years earlier, accepting dues value ₹ ₹58,254 crore estimated by the telecom division.
“The future for Vodafone Idea seems to be bleak as a consequence of its excessive leverage and big money necessities. A 20/15/10-year grant would end in VIL’s money outgo of INR51b/INR59b/INR75b at 8% rate of interest. VIL will want 73% ARPU hike i.e. ₹85 ARPU enhance, in order to service its obligations. Lower payment tenure might put strain on VIL’s money flows,” Motilal Oswal Financial Services stated in its replace.
The apex courtroom reiterated that there’s “no room for self-assessment” and telcos should deal with the AGR dues calculated by the DoT as closing. However, the federal government desires that the telcos be granted a timeline for payment of dues to keep away from insolvency.
Last week, Vodafone Idea had paid the DoT one other ₹1,000 crore as a part of its dues associated to AGR, taking the beleaguered telecom operator’s complete funds to ₹7,854 crore.
From the start of the 12 months, Vodafone Ide shares fell 36% towards a drop of 8% within the Sensex.
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