Shares of Telecom companies were experiencing selling pressure after the Supreme Court denied their motion to recalculate their adjusted gross revenue (AGR) dues.

Vodafone Idea and Bharti Airtel were among the telecom companies that filed a remedy request, alleging a significant error in calculating the department of telecommunications’ dues.

The debt-ridden cellular company Vodafone Idea’s stock dropped more than 15%. Indus Towers’ stock dropped 14% to Rs 367.25, while Vi shares were trading at Rs 10.96 on the NSE at 12:05 pm.

However, Bharti Airtel shares were up 0.5% on the NSE, trading at Rs 1,662 a share.

In the AGR case, Vodafone Idea requested three main reliefs in its curative petition:

• Rectification of clerical and arithmetic errors in the AGR demand.
• Limitation of the penalty to 50% of the shortfall.
• Revision of the penalty’s interest rate to 2% above the prime lending rate of the State Bank of India.

In the absence of court intervention, Vodafone Idea’s cash flow predicament will only become worse. Bharti Airtel’s prospects are marginally improved by the dismissal of the curative appeal, particularly in light of prospective increases in market share.

Vodafone Idea’s ability to raise capital, however, may be jeopardised by the adverse Supreme Court ruling. Debt financing is required for Vodafone Idea to reach its capital expenditure targets.

Vodafone Idea’s appeal against the Supreme Court’s 2019 decision regarding payments owed to the government was accepted by the court on 15 July.

At 1:32 pm, the shares of Vodafone Idea were trading 15.35% lower at Rs 10.92, while Indus Towers were trading 9.26% lower at Rs 388.50 on NSE.

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