Stock Market Today: Vodafone Idea Share Price Drops 4%

Stock Market Today: Vodafone Idea Share Price Drops 4%

Stock Market Today: Vodafone Idea share price, which opened nearly flat, dipped more than 4% in the morning trade on Tuesday. The company issued a clarification on the AGR dues waiver on Monday after market hours.

Vodafone Idea in its clarification to the exchanges had said that “we have not received any communication from the Government in relation to the above-reported matter. ”

The Vodafone Idea share price had seen sharp gains of up to 10% on the exchanges on Monday, before ending 9% higher after news reports suggested that the government is planning to waive AGR dues for telecom companies.

The revenue generated by telecom operators from their core services is known as AGR.

A Trai report had said that telecom operators' gross revenue increased to ₹91,426 crore in the July–September 2024 quarter, an increase of 10.5% year over year, led by tariff hikes. The government uses adjusted gross revenue to calculate levies, and gross revenues had risen 13.11 per cent year-over-year to ₹75,310 crore. Vodafone Idea's AGR increased from ₹7,507.65 crore to ₹7,836.98 crore, a 4.39 per cent rise.

The exchange had sought clarification from Vodafone Idea on January 20, 2025, with reference to the news item titled "Vodafone Idea, Airtel shares in focus as govt plans AGR dues waiver"

Vodafone Idea issued a clarification on the news item on January 20, post the market hours, concerning the news article that appeared in Mainstream Media on January 18, 2025, titled “In Big Relief to Telcos, Govt weighs over ₹1 lakh crore AGR dues waiver” and the consequent material price movement in the scrip of the company.

Vodafone Idea in its release said, “We have not received any communication from the Government in relation to the above-reported matter. As and when there is any development which requires disclosure, we will do the needful”.

Vodafone Idea share price opened at ₹9.94 on the BSE on Tuesday, almost flat compared to the closing price of ₹9.95 on Monday. The Vodafone Idea share price, however, dipped further to intraday lows of ₹9.51, which translated into a decline of more than 4%.