Vodafone-Idea shares tank 23 per cent to hit all-time low on insolvency fears

At 11:11 am, the stock of the telecom major was at Rs 3.09, down by Rs 0.61 or 16.49 per cent on the BSE, while on NSE it was at Rs 3.05, down Rs 0.65  or 17.57 per cent. Over 25.71 crore shares were traded across BSE and NSE so far in the trade on Thursday.

Shares of Vodafone Idea cracked as much as 22.97 per cent on the National Stock Exchange (NSE) to hit an all-time low of Rs 2.85 amid fears of possible insolvency of the telecom giant. On the BSE, the scrip fell 21.62 per cent to Rs 2.90.

At 11:11 am, the stock of the telecom major was at Rs 3.09, down by Rs 0.61 or 16.49 per cent on the BSE, while on NSE it was at Rs 3.05, down Rs 0.65  or 17.57 per cent. Over 25.71 crore shares were traded across BSE and NSE so far in the trade on Thursday.

The concerns regarding the company’s future come after Vodafone Group on Tuesday said its future in India could be in doubt if it is forced to pay thousands of crores in statutory dues following the Supreme Court ruling.

“Financially there’s been a heavy burden through unsupportive regulation, excessive taxes and on top of that we got the negative Supreme Court decision,” news agency PTI reported quoting Vodafone chief executive Nick Read on a call with reporters after first-half results.

Department of Telecommunications (DoT) issued a notice to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court, PTI reported on Wednesday citing an industry source. As per the report, the DoT has given the option to telecom operators to clear all the dues on a self-assessment basis.

According to an internal estimate by the DoT, the total dues on the telecom service providers arising out of SC order are around Rs 1.33 lakh crore.  As per DoT’s estimate, the liability of Bharti Airtel Group is Rs 62,187.73 crore, Vodafone Idea Rs 54,183.9 crore and BSNL and MTNL Rs 10,675.18 crore. Companies under insolvency like Reliance Communications and Aircel have dues outstanding worth Rs 32,403.47 crore and companies under liquidation Rs 943 crore. (With PTI inputs)

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