Vodafone Idea shares continue to fall; drop 5 pc post SC ruling

Shares of Vodafone Idea further declined 5 per cent on Friday after the Supreme Court allowed the Centre's plea to recover adjusted gross revenue (AGR) of about Rs 92,000 crore from telecom service providers. Vodafone Idea's scrip tumbled 5.08 per cent to close at Rs 4.11 on the BSE. During the day, it plummeted 15.47 per cent to Rs 3.66 -- its 52-week low.

The company's scrip had plunged 23.36 per cent on Thursday after the apex court's verdict. Bharti Airtel also fell by 2.59 per cent to Rs 362.80 during the day but later closed at Rs 375.80, up 0.90 per cent.

In a setback to telecom service providers, the Supreme Court on Thursday allowed the Centre's plea to recover AGR of about Rs 92,000 crore from them. The decision will have a big impact on the sector as it is already in huge financial distress, said Prashant Singhal, Emerging Markets TMT Leader, EY.

Bharti Airtel on Thursday said the Supreme Court's verdict on AGR will weaken viability of the telecom sector, and the government must review its impact and find ways to mitigate financial burden on the already stressed industry.

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