The telecom operator lost nearly ₹13,500 crore in market value in the first hour after the Supreme Court verdict.
The stock had slipped below ₹11, though it has since recovered. This is the price at which the promoters raised fresh capital in April 2024.
As of 1 pm on 19 September, the stock is down over 40% from its recent peak of ₹19.18.
Thirteen out of the 22 analysts covering Vodafone Idea had a "sell" rating on the stock even before the Supreme Court dismissed the company’s appeal today.
The telco, owned by billionaire Kumar Mangalam Birla, owes the Indian government ₹70,300 crore for past revenues, a case settled by the Supreme Court in 2019.
Since then, despite multiple appeals, the telcos have failed to convince the top court to dismiss or reduce the government’s demand.
Had the Supreme Court agreed with Vodafone Idea’s case, it could have added ₹5 to earnings per share, according to many analysts. However, this did not materialise.
Despite being one of only three major telcos in India, Vodafone Idea is struggling on all fronts. It has been losing subscribers, posting losses, and remains burdened by substantial debt.
In a recent report, Goldman Sachs, a global investment bank, stated that the company’s cash flow may remain negative at least until 2031.