New Delhi: Shares of Vodafone Idea crashed over 27 per cent during the day 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 23.36 per cent to close at Rs 4.33 on the BSE. During the day, it tanked 27.43 per cent to Rs 4.10 -- its 52-week low. Led by the sharp fall in its shares, Vodafone Idea witnessed an erosion of Rs 3,792.58 crore from its market valuation which is now at Rs 12,442.42 crore.
Bharti Airtel also tumbled 9.68 per cent to Rs 325.60 during the trade. But, later it bounced back and closed 3.31 per cent higher at Rs 372.45. 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.
Bharti Airtel on Thursday said the Supreme Court verdict on adjusted gross revenue will weaken viability of telecom sector, and the government must review its impact and find ways to mitigate financial burden on the already stressed industry.