Vodafone Idea share price hits a NEW 52-week LOW intraday, stock down 13% - know reason here
Vodafone Idea (Vi) shares on Tuesday tanked over 13 per cent to hit a new 52-week low of Rs 7.17 per share on the BSE intraday trade, mostly after reports that the telecom companys Chairman Kumar Mangalam Birla has reportedly told the government that he is willing to give up his promoter stake in the company.
Vodafone Idea (Vi) shares on Tuesday tanked over 13 per cent to hit a new 52-week low of Rs 7.17 per share on the BSE intraday trade, mostly after reports that the telecom company's Chairman Kumar Mangalam Birla has reportedly told the government that he is willing to give up his promoter stake in the company.
The stock of the telecom company dipped below its earlier low of Rs 7.6 per share hit on October 19, 2020. So far in July, it was trading at the lowest level since July 2020 and had hit a record low of Rs 2.61per share in November 2019.
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The counter has been on a continuous decline since the Supreme Court rejected the telecom pleas regarding recomputing of AGR (adjusted gross revenue) dues. The stock has declined 22.5 per cent from Rs. 9.75 per share from July 22, 2021.
According to the Press Trust of India (PTI) report, Birla has expressed willingness to offer his group’s 27 per cent stake in VIL to any government or domestic financial entity in order to keep the stressed telecom company alive.
The Aditya Birla Group chairman and promoter of VIL made the suggestion in a letter to Union Cabinet Secretary Rajiv Gauba on June 7, PTI said in a report.
The VIL debt has more than trebled in the last four years to Rs 1.6 lakh crore as of the end of March 2021, from around Rs 37,000 crore in FY16, which includes deferred spectrum obligations and adjusted gross revenue (AGR) liabilities.
Similarly, The apex court bench headed by Justice LN Rao on July 23, 2021, had pronounced its verdict on pleas filed by the telecom companies seeking correction of ‘arithmetic errors’ in AGR demand. In his verdict, Rao rejects the recomputation please of Vodafone Idea and Bharti Airtel.
AGR is a fee-sharing mechanism between the government and the telcos who shifted to the 'revenue-sharing fee' model in 1999, from the 'fixed license fee' model. In this course, telcos are supposed to share a percentage of AGR with the government.
At around 12:10 pm, the scrip is trading around 10 per cent lower to Rs 7.43 per share, near all-time low levels, as compared to 0.8 per cent rise in the S&P BSE Sensex.
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