Vodafone Idea rose 0.71% to Rs 4.27 after the media reported that Vodafone Plc might inject some fresh capital into Vodafone Idea to meet operational requirements and clear adjusted gross revenue (AGR) dues.
According to media reports, Vodafone Group Plc is putting in funds into Vodafone Idea (VIL) to deal with operational requirements including settle AGR dues. While Vodafone is set to put in $200-225 million, the rest is $125-$150 million might come from their joint venture (JV) partner. The contributions are likely to be in the form of preference capital or redeemable preference shares, reports added.Vodafone Idea is a joint venture (JV) between Vodafone Group and Aditya Birla Group.
In March 2020, Vodafone Idea said it filed its self-assessment of the AGR liabilities with the Department of Telecommunications (DoT) on 6 March 2020, in which AGR liability principal amount of Rs 6,854 crore was determined for the period from FY 2006-07 to FY 2018-19. The company had earlier paid a sum of Rs 2,500 crore on 17 February 2020 and a further sum of Rs 1,000 crore on 20 February 2020 towards this liability. The company has on 16 March 2020 paid a further amount of Rs 3,354 crore to the DoT, being the balance part of the principal amount towards AGR liability. With the payment of Rs 3354 crore to the DoT, the company has paid the full principal amount of Rs 6854 crore towards the AGR dues.
However, a bench of the Supreme Court of India on 18 March 2020 held that no further objections to its orders would be allowed against payable AGR dues. Justice Arun Mishra questioned the telecom companies' (telcos) self-assessment. The bench further added that the Department of Telecommunications (DoT) demand was confirmed by the court and self-assessment cannot be allowed when Supreme Court (SC) order clearly spells out the dues. He reportedly added that some telcos have requested 8-10 months' time to corroborate numbers of self-assessment, but this cannot be allowed.
On a consolidated basis, Vodafone Idea reported a net loss of Rs 5,807.24 crore in Q3 December 2019 as against a net loss of Rs 4,203.97 crore in Q3 December 2018. Net sales fell 5.75% to Rs 11,076.20 crore in Q3 December 2019 over Q3 December 2018.
Vodafone Idea operates as a telecom service provider. The company offers 2G, 3G, and 4G mobile services, as well as mobile payments, advanced enterprise offerings, and entertainment.
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