Idea Share Price Today: SC hearing on telecoms’ AGR dues on June 11

Idea Share Price Today: The outcome of the AGR (adjusted gross revenue) case, which will be heard in the Supreme Court, will decide the course for telecom shares, mainly Vodafone Idea Share Price Today, which has more than doubled in the last one month.

The hearing may include the government’s application that telecom be allowed to spread the payment of their dues over 20 years or less.

Analysts said if the court asks companies to pay sooner, it could bring the rally in these shares to a screeching halt.

Idea Share Price Today

• “If they get any time period lesser than 15-20 years to pay AGR dues they won’t have much money to invest in 4G capex. “
• “This would have implications on market share as without such investments they would end up losing market share,” said Rajiv Sharma, head of research at SBICAP Securities
• “If they have to pay everything upfront, then Vodafone Idea may decide to shut down and they may get referred to NCLT (the National Company Law Tribunal
• The telecom-operator has paid Rs 6,854 crore out of the Rs 58,254 crore it owes the government in AGR dues.
• Idea share price nse ended up 7.34 per cent at Rs 10.82 on wednesday. It has surged 136 per cent from 4.58 level a month ago.
• In comparison, peer Airtel’s shares are up 6 per cent in the last one month.

Vodafone Idea Share price Today

• The rally in Vodafone Idea shares price has been amid dipping delivery volume, suggesting long-term investors remain sceptical about its debt levels and adjusted gross revenue dues.
• Data compiled by ETIG Database shows that the delivery volume percentage in the last one week was close to 23% and was 26.9% in the last one month.
• This is similar to 3-month average delivery volume of 28.6 % and 6-month average delivery volume of 28.54 per cent.

Idea Share Price NSE

• “It points to speculation activity in the counter. Telecom sector looks good and the stock is moving because other telecom giants are rallying. One can sell the Vodaone stock on further rally,” said Chandan Taparia, derivatives analyst at Motilal Oswal

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