Vodafone Idea surged on Monday after both the telcos said that they will pay the AGR dues soon, as ordered by the Supreme Court. Meanwhile, Bharti Airtel was flat even after it paid Rs 10,000 crore for adjusted gross revenue dues as part of its dues to the Department of Telecommunications (DoT).

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Bharti Airtel fell 0.4 percent to Rs 562 per share, while Vodafone Idea rallied 15.4 percent at Rs 3.97. In comparison, the BSE Sensex was trading 0.1 percent or 39 points lower at 41,218.

The Supreme Court, on Friday, slammed the Department of Telecommunications (DoT) for not taking any action against the telecom companies on failing to repay AGR dues as ordered by the top court. It also directed for contempt proceedings to be launched against telecom companies for violating the SC order. The top court will next hear the case on March 16.

Post the order, Vodafone Idea said it is planning to pay the AGR dues in the next few days as ordered by the Department of Telecommunications and the Supreme Court. The company said it is currently assessing the amount that it is required to pay as per the SC order dated October 24, 2019.

Earlier, Bharti Airtel also informed the DoT that it is ready to deposit Rs 10,000 crore by February 20 as part of the payment. Later the company informed the bourses that it has paid a sum of Rs 9,500 crore towards the AGR dues

"In compliance with the Supplementary Order dated 24th October 2019 and the order dated 14th February 2020, of the Hon'ble Supreme Court, we have duly paid an amount of Rs 9500 Crores (Rupees Nine Thousand Five Hundred Crores) on behalf of Bharti Airtel Limited (including in respect of Telenor India which has merged with Bharti Airtel Limited) and an amount of Rs 500 Crores (Rupees Five Hundred Crores) on behalf of Bharti Hexacom Limited. The said amount of Rs 10,000 Crores (Rupees Ten Thousand Crores) has been paid on behalf of Bharti Airtel Limited, Bharti Hexacom Limited and Telenor," the company said in a letter to the Department of Telecommunications on Monday.

As per the DoT calculation, Airtel has to pay Rs 35,500 crore, Vodafone Idea Rs 53,000 crore and Tata Teleservices a little over Rs 12,500 crore as AGR dues.

Meanwhile, post the judgment, brokerages remained cautious on both the telcos. Supreme Court Order leaves telcos with limited options to get relief from legal or government sources, said Motilal Oswal. It also sees far-reaching serious ramifications on the telecom and banking sectors. It added that a duopoly market will likely benefit Bharti Airtel and hence raised the target price for the company to Rs 650 per share.

Axis Capital also believes that Vodafone Idea’s debt burden is high, while Bharti Airtel is better placed to make payments. the brokerage added that Bharti may continue to gain market share at an accelerated pace.

CLSA, on the other hand, maintained a 'sell' call on the stock and cut its target to Rs 3.5 per share from Rs 5.5 earlier.

First Published:Feb 17, 2020 9:20 AM IST