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NEW DELHI: Shares of Vodafone Idea surged 9 per cent in Monday's trade after the telecom operator paid an additional Rs 1,000 crore to the government towards the statutory dues ahead of the Supreme Court hearing on the adjusted gross revenue (AGR) matter later in the day.
With the fresh payment, Vodafone Idea made a total payment of Rs 7,854 crore towards AGR dues. The company had earlier deposited Rs 6,854 crore in three tranches, Vodafone Idea said in a regulatory filing.
Following the development, the stock rose 9 per cent to hit a high of Rs 9.68 on BSE.
In the last hearing on the AGR matter on June 18, the Supreme Court had said that private telecom operators, including Vodafone Idea and Bharti Airtel, must come out with a "reasonable payment plan", make some payment to "show their bonafide" and file their books of accounts for the last 10 years.
Recent data released for March showed Voda Idea lost 64 lakh in subscribers.
"Vodafone Idea’s continuous loss of subscribers is majorly due to its sub-par network qualities along with its survival uncertainty, which is hinging on the Supreme Court’s decision to grant an extended moratorium period on the AGR liability," Motilal Oswal Securities said.
In an interim relief to Vodafone Idea, telecom tribunal on Friday stayed Trai's direction to the company to withhold a plan that promises priority 4G network to premium customers. However, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) said Trai can proceed with its inquiry and pass a final order in accordance with the law at the earliest.
The statutory dues arose after the Supreme Court, in October last year, upheld the government's position on including revenue from non-core businesses in calculating the annual AGR of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer.
Vodafone Idea faces a whopping Rs 58,000 crore demand in overall statutory dues, after the apex court last year ordered the non-telecom revenues to be included in calculating statutory liabilities.
With the fresh payment, Vodafone Idea made a total payment of Rs 7,854 crore towards AGR dues. The company had earlier deposited Rs 6,854 crore in three tranches, Vodafone Idea said in a regulatory filing.
Following the development, the stock rose 9 per cent to hit a high of Rs 9.68 on BSE.
In the last hearing on the AGR matter on June 18, the Supreme Court had said that private telecom operators, including Vodafone Idea and Bharti Airtel, must come out with a "reasonable payment plan", make some payment to "show their bonafide" and file their books of accounts for the last 10 years.
Recent data released for March showed Voda Idea lost 64 lakh in subscribers.
"Vodafone Idea’s continuous loss of subscribers is majorly due to its sub-par network qualities along with its survival uncertainty, which is hinging on the Supreme Court’s decision to grant an extended moratorium period on the AGR liability," Motilal Oswal Securities said.
In an interim relief to Vodafone Idea, telecom tribunal on Friday stayed Trai's direction to the company to withhold a plan that promises priority 4G network to premium customers. However, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) said Trai can proceed with its inquiry and pass a final order in accordance with the law at the earliest.
The statutory dues arose after the Supreme Court, in October last year, upheld the government's position on including revenue from non-core businesses in calculating the annual AGR of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer.
Vodafone Idea faces a whopping Rs 58,000 crore demand in overall statutory dues, after the apex court last year ordered the non-telecom revenues to be included in calculating statutory liabilities.