Vodafone Idea Ltd (NSE: IDEA): Today is going to be a very important day for Vodafone Idea Ltd. The Supreme Court is going to hear the company’s curative petition in the Adjusted Gross Revenue (AGR) dues case on Friday, August 30. The company has demanded 3 different reliefs in the AGR case.
This hearing is important because many market experts believe that if the court accepts the company’s side, then there will be a sharp decline in the company’s dues.
Vodafone Idea Ltd’s stock has seen a decline in Wednesday’s trading. The stock has closed below the level of 16 with a quarter-percent decline.
The company demanded three main reliefs in the curative petition presented before the court in the AGR case.
Under the first demand, the company has demanded the calculation of AGR dues and the correction of errors made during calculation.
Apart from this, there has also been a demand for amendment in the interest rates imposed on the penalty and review of the penalty amount.
Senior advocate Harish Salve, who appeared on behalf of the company, said that the main concern of the company is about the mistake made by the telecom department in calculating the outstanding amount.
At present, the total liability of the company including the principal dues, interest, and penalty has become Rs 70 thousand crore.
This hearing is important for the company because if the decision is in its favor, the company can get a big relief.
According to media reports quoting many analysts, if the Supreme Court gives a decision in favor of the company, then the company’s AGR dues will come down by 46 percent to Rs 38400 crore.
It is a relief of about Rs 32 thousand crore in the liability of Rs 70 thousand crore, this relief will prove to be a big relief for the company struggling with the burden of cash.
Apart from this, after the positive decision for the company, Vodafone Idea Ltd will also get a lot of help in raising funds.
The company had told the court that it is trying to raise funds but the lending parties want a clear picture from the Supreme Court in this matter.
Quick Fact
Company name: Vodafone Idea
| Company name | Vodafone Idea |
|---|---|
| Court Hearing Date | Friday, August 30 |
| Hearing Matter | AGR Dues Case |
| Reliefs Demanded | 3 Reliefs in AGR Case |
| Key Concerns | Calculation errors, penalty review |
| Current Liability | ₹70,000 crore |
| Possible Liability Reduction | 46% reduction if the decision is favorable |
| Possible New Liability | ₹38,400 crore after reduction |
| Potential Relief Amount | ₹32,000 crore |
| Impact of Positive Decision | Easier fundraising |
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