Vodafone Idea stays in green with 5% rally after SC nod to hear plea on AGR dues

Shares of Vodafone Idea rallied over 5 percent on October 11, extending gains from the previous session. The 7 percent rise in two days came after the company moved the Supreme Court regarding its Adjusted Gross Revenue (AGR), with the apex court agreeing to consider the matter.

At 1:15pm, Vodafone Idea shares were trading at Rs 11.65, up 5.4 percent from the previous closing price.

In its curative petition, the telecom major has stated that the penalty and the interest on the penalty levied by the Supreme Court’s 2019 judgment are so substantial that they threaten the existence of the company. Vodafone Idea added that the penalty and interest on penalty are higher than the principal amount itself, which is why the telco is appealing for a reconsideration of the judgment.

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The stock has gained 45 percent on a year-to-date (YTD) basis, compared to 8 percent rise in Nifty 50. In the last one year, the telecom stock has risen over 34 percent. The counter has a 1-year Beta of 0.93, implying low volatility.

VI Financials, debt and shareholding

Vodafone Idea’s consolidated net loss widened to Rs 7,840 crore in the April-June quarter of FY24. The consolidated revenue from operations during the reported quarter increased marginally by 2.3 percent to Rs 10,655.5 crore.

Total gross debt (excluding lease liabilities and including interest accrued but not due) as of June 30, 2023, stood at Rs 2,11,760 crore. Debt from banks and financial institutions reached Rs 9,500 crore, and money raised through debt instruments was Rs 1,660 crore.

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According to the June quarter shareholding data, the promoters own 50.4 percent in Vodafone Idea. FIIs maintained a low stake of 2.3, while DIIs held 33.9 percent in the telco. The public had a 13.4 percent stake in Vodafone Idea.

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