Vodafone Idea convenes investor meeting amid panic on D-Street over Supreme Court AGR decision

Vodafone Idea has called investors and analysts to a meeting with its senior management on September 23 regarding “recent events,” the telecoms company said. This comes a day after Supreme Court rejected a series of allegations made by several telecom companies, including Vodafone Idea and Bharti Airtelin the recalculation of Adjusted gross income Case (AGR).

The ruling is seen as a major blow to telecom companies, and in particular to cash-strapped Vodafone Idea, which owes billions of rupees to the government in fees and charges.

“Vodafone Idea Limited will host a conference call with its senior management on Monday, 23 September 2024, from 2:30 PM to 3:00 PM India Standard Time to provide an update on recent developments,” the company said in a filing with the stock exchange.

Company representatives for the conference call will include Akshaya Moondra, CEO, and Murthy GVAS, CFO, along with support from the senior management team.

Shares of debt-laden telecom giant Vodafone Idea plunged following the Supreme Court ruling and fell below the Rs 10 mark to a low of Rs 9.79 on the Mumbai Stock Exchange today as disappointment over the AGR case persisted. However, the stock closed 1% higher at Rs 10.48 in Mumbai trade, while the broader BSE Senex index hit an all-time high and soared around 1,400 points.

Vodafone Idea, the joint venture between the British Vodafone Plc And India’s Aditya Birla Group, in which the Indian government holds a 23.8% stake, may be starting from scratch again. 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 judicial relief on these payments but remains mired in financial uncertainty. There are also concerns about the huge challenges the telco is facing in its efforts to raise Rs 25,000 crore through debt after the Supreme Court rejected the telecom operators’ curative plea on AGR dues. However, Vodafone Idea’s discussions with lenders and suppliers are still ongoing, 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 outcome of the petition was not factored into the company’s business plans or negotiations. An insider mentioned that the petition was not considered in the business plan submitted to lenders. Techno-economic assessments by lenders were also positive and made no reference to the curative decision.