Voda Idea shrugs off rental default report, recovers 12% from day's low

Vodafone Idea has been facing a financial crunch since the Supreme Court ordered it to pay Rs 54,000 crore as AGR to the government

Shares of Vodafone Idea bounced back 12 per cent from its intra-day low on Friday after initially falling over 7 per cent after media reports suggested that telecom services providers defaulted on rental, energy payments for June to tower firms.

The stock had fallen as low as Rs 8.75 on the BSE in intra-day trade before bouncing back as much as 12 per cent to Rs 9.80 levels.

At 12:58 pm; Vodafone Idea was trading 3.7 per cent higher at Rs 9.72, as compared to 0.53 per cent decline in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined around 647 million equity shares changing hands on the NSE and BSE so far, data shows.

According to Business Standard report, Vodafone Idea, the joint venture between Vodafone Group Plc and Aditya Birla Group, has defaulted on rental and energy payments for June to telecom tower companies.

According to a senior executive of a telecom tower firm, Vodafone Idea cited payment of adjusted gross revenue (AGR) to the government and the resultant cash flow problems for the default. “The company usually pays its dues by 3rd of every month, but this month we have not received any money. Vodafone Idea’s dues to all telecom companies run into several hundred crores,” the executive said.
 

“The company usually pays its dues by 3rd of every month, but this month we have not received any money. Vodafone Idea’s dues to all telecom companies run into several hundred crores,” the executive said. “It will lead to a chain reaction because we have to pay our own suppliers, including fuel companies,” he said. CLICK HERE FOR THE FULL REPORT