Shares of Vodafone Idea Ltd. experienced a volatile trading session on Monday, ultimately closing at a positive 9.28% at ₹9.54 on the Bombay Stock Exchange, as a major clarification from the Supreme Court on Adjusted Gross Revenue (AGR) dues dominated both the investment rumour and the company's subsequent denial.
The day began with intense market speculation after reports surfaced that US-based private equity firm Tillman Global Holdings (TGH) was in talks to invest between $4 billion and $6 billion (approx. ₹35,000 - ₹52,800 crores) in the heavily-indebted telecom operator. The reports suggested this investment was conditional based on the government providing a comprehensive relief package for Vi's massive liabilities, including spectrum and AGR dues, as cited in the Business Today reports.
Following the reports, which sent the stock rising over 5% in early trade, the BSE sought an official clarification from the company. Vodafone Idea filed a response with the exchanges denying the news.
According to Business Today, the company stated, “Currently, there is no proposal being considered by the Board that requires disclosure as reported by the media. While it added standard language about continuously exploring various opportunities,” the filing was a clear denial of an active, reportable deal.
Normally, such a denial would send a speculative stock tumbling. However, Vodafone Idea's shares did the opposite. The stock, which was trading flat around ₹8.80 mid-day, suddenly turned over 14% to hit an intraday high of ₹9.97. This surge was driven by a separate, far more concrete development from the Supreme Court.
The Supreme Court issued a crucial clarification regarding Vi's AGR case, stating that the government is free to consider relief on both the additional AGR demands and a reassessment of all pending dues. This was a significant positive shift from a previous, more restrictive order and gave the government a clear path to offer the telecom company substantial relief, boosting investor confidence in its survival, as cited in the Business Standard reports.
The market ultimately chose to focus on the tangible Supreme Court relief over the denied investment rumour. The stock lost some gains from its peak but still closed with a massive 9.28% gain, capping a volatile day defined by conflicting news and a clear bet on regulatory relief.
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