Firm’s capex heft to decline, says BoFA
Shares of Vodafone Idea tanked as much as 40% intraday on Wednesday, after the Supreme Court ruled that self-assessment of adjusted gross revenue (AGR) dues was a violation of its order.
Shares of Vodafone Idea closed 34.85% lower at ₹3.16 on the BSE on Wednesday, valuing the company at ₹9,080 crore.
Vodafone Idea recently computed its AGR dues at ₹21,533 crore, well below the over ₹58,000 crore arrived at by DoT.
“Given the fact that the SC is going to hear the government’s rescue plan after two weeks, we believe there remains hope for VIL (if the court agrees to the govt.’s plan). From Bharti’s perspective, they have to pay higher than initial expectation on AGR dues. We think even in this environment, Bharti should be able to manage it,” BofA Securities said in a research note to its clients.
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