Vodafone Idea shares surge over 14% after Supreme Court clarifies on AGR dues case

Shares of Vodafone Idea gained as much as 14% on Monday, November 3, after the Supreme Court issued an important clarification on the AGR dues, over which there was a cloud of uncertainty. This is the biggest single-day gain for the stock since April 2024.

The Supreme Court said that Vodafone Idea had asked for relief on both additional AGR dues and a reassessment of all pending dues.

The Supreme Court clarified that the government is free to consider relief on both additional and reassessment of the AGR dues.

In its earlier hearing on October 27, there was uncertainty over whether the court order applies only to Vodafone Idea's petition of additional AGR dues worth close to ₹9,500 crore, or to the entire AGR dues pending worth nearly ₹80,000 crore.

The Supreme Court had observed back then that in light of peculiar facts

such as the Centre's stake in the telecom company, and considering the impact on 20 crore consumers, it sees no impediment in the Centre reconsidering the issue and taking an appropriate call.

Shares of Vodafone Idea are now trading 13.1% higher at ₹9.87 after the Supreme Court clarification.

In light of the clarification of Vodafone Idea, shares of Bharti Airtel are up 1%, while those of Bharti Hexacom have also recovered from the lows of the day to trade with gains.

Shares of Indus Towers, who could be the biggest beneficiary in case any relief is forthcoming for Vodafone Idea, have also surged 5% after the clarification.