Shares of two telecom companies lost over 2% to 13% after the Supreme Court on Thursday (11 June) reportedly adjourned the hearing on the adjusted gross revenue (AGR) issue till 18 June 2020.
Bharti Airtel fell 2.69% to Rs 552 while Vodafone Idea slumped 13.03% to Rs 9.41. Meanwhile, Grasim Industries, Vodafone's co-parent firm, lost 3.23% to Rs 594.85.
Reliance Industries, which owns Reliance Jio, fell 2.19% to 1537.50. Reliance Jio is the only telco that does not have any major dues.
The media reported that the Justice Arun Mishra-led bench heard the argument of several telecom firms - Bharti Airtel, Tata Teleservices, Vodafone Idea - regarding the payment of AGR (adjusted gross revenue) dues worth Rs 1.43 lakh crore.
The SC reportedly asked telecom operators to file affidavits in five days regarding the roadmap they are proposing to clear the dues. Telecos are required to provide details with respect to timeline of payment, and security they can provide to guarantee payment.
Vodafone Idea owes Rs 53,000 crore in statutory dues. According to reports, Vodafone Idea submitted before the court that dues are huge and the firm would not be able to file the affidavit in 3-4 days. The company also expressed its inability to pay salaries to employees, meet expenses and to give any bank guarantee.
Meanwhile, SC said the Department of Telecommunications' (DoT) demand for Rs 4 lakh crore worth of AGR dues from the PSUs was "totally impermissible". The apex court added that the DoT should consider withdrawing it.
Following the news, shares of Gujarat Narmada Valley Fertilizers gained over 9% while GAIL India, Power Grid Corporation of India and Oil India added between 5% to 6%.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)