Mumbai (Maharashtra) [India], Dec 9: The share price of telecom major Vodafone Idea fell by 5.64 per cent intraday on Monday after its Chairman Kumar Mangalam Birla said the company may have to stop operations if it does not receive any relief from the government following the Supreme Court order to pay dues of Rs 92,000 crore related to the adjusted gross revenue (AGR) issue.
At 11:10 am, the stock was trading at Rs 6.53 per share against the previous close of Rs 7.31. “We will have to shut shop,” said Birla at the Hindustan Times Leadership Summit over the weekend when asked about the future course of action in the absence of government relief.
Last month, Vodafone Idea and competitor Bharti Airtel had said that their ability to operate and make profits will depend on relief from the government after the Supreme Court upheld a demand by the Department of Telecommunications that mobile operators pay overdue levies and interest.
Birla said the company will have to opt for the insolvency route in the absence of relief.
Vodafone Idea had reported a record loss of Rs 50,921 crore for the July to September quarter (Q2 FY20) after making a provision for the apex court’s ruling on payment of AGR dues.
The company’s revenue from operations during the quarter plunged to Rs 10,844 crore from Rs 22,114 crore year-on-year.
Vodafone Idea hiked tariffs for its pre-paid plans effective from December 3, a first in past four years, under which call and data charges will cost more by up to 42 per cent. It will also charge 6 paise per minute for every outgoing call made by customers on to the network of other operators.