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Telecom stocks plummet; Vodafone Idea crashes 23 pc after SC order

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Press Trust of India New Delhi
Last Updated : Oct 24 2019 | 3:10 PM IST

Shares of Vodafone Idea crashed up to 23 per cent on Thursday after the Supreme Court allowed the Centre's plea to recover adjusted gross revenue (AGR) of about Rs 92,000 crore from telecom service providers.

Vodafone Idea plummeted 23 per cent to Rs 4.35 -- its 52-week low -- on the BSE.

Bharti Airtel, which plunged 9.68 per cent to Rs 325.60 after the announcement, later recovered the lost ground and was trading 2.83 per cent higher at Rs 370.70.

In a setback to telecom service providers, the Supreme Court on Thursday allowed the Centre's plea to recover AGR of about Rs 92,000 crore from them.

Industry body COAI said the ruling will deal a "disastrous blow" to the industry, given its precarious financial condition.

The decision will have a big impact on the sector as it is already in the state of huge financial distress, Prashant Singhal, Emerging Markets TMT Leader, EY, said.

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First Published: Oct 24 2019 | 3:10 PM IST

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