In the past 7 trading times, the stock has tanked 42 for every cent following the Supreme Court docket dismissed the petitions of telcos trying to get a staggered solution to pay out their Adjusted Gross Earnings (AGR) linked dues.
In accordance to a report by The Economic Periods, the govt is unlikely to invoke Vodafone Idea’s financial institution guarantees for now, even as the officers of the telecom and finance ministries satisfied Cabinet secretary Rajiv Gauba to talk about approaches to be certain that the sector retains three personal players, officers stated.
The Office of Telecommunications (DoT) has sought legal belief which includes that of Solicitor General Tushar Mehta on irrespective of whether to invoke financial institution guarantees of corporations in situation they fail to pay out their entire AGR dues in advance of the next date of hearing on March seventeen. Any move to invoke or encash the financial institution promise would put the operation of hugely-stressed Vodafone Thought at risk, Company Common documented on Tuesday.
Meanwhile, the ranking company India Rankings and Research (Ind-Ra) on Tuesday downgraded Vodafone Idea’s very long-time period issuer ranking to ‘IND B’ from ‘IND BBB-’ while keeping it on ranking check out adverse (RWN).
“The RWN demonstrates significant uncertainties in excess of the result of the modification software submitted by telcos the quantum of the AGR-linked liabilities and Vodafone Idea’s skill to pay out the AGR dues. The RWN also demonstrates uncertainties in excess of other liquidity events, these as the feasible risk of accelerated payment of money liabilities and probably delays in asset monetization”, Ind-Ra stated in a push launch.