Vodafone Idea Shares Surge Ahead of Supreme Court AGR Hearing

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Idea Ltd soared nearly 7% on September 23, extending their impressive rally to 38% over the past three weeks, as investor optimism grows ahead of a crucial Supreme Court hearing on the telecom company’s adjusted gross revenue (AGR) plea. The stock hit an intraday high of Rs 8.97, marking its highest level in over seven months, before settling at Rs 8.79, up approximately 5% for the day. Supreme Court to Hear AGR Plea on September 26 The Supreme Court is scheduled to hear Vodafone Idea’s challenge to a fresh Rs 9,450-crore AGR demand from the Centre on Friday, September 26. The case follows the Court’s March 18, 2020, ruling, which upheld the Department of Telecommunications’ (DoT) calculation of AGR dues up to FY17 and prohibited any reassessment by telecom operators. The upcoming hearing has sparked hope among investors for potential relief from the substantial financial burden. In a notable development, the Centre has indicated a willingness to find a resolution, stating to the apex court, “We are not opposing Vodafone Idea’s plea. Some solution is required, as the government is also an equity holder. Any solution will be subject to Supreme Court approval.” This statement has fueled market speculation about a possible favorable outcome for the debt-laden telecom operator.