Vodafone Idea’s stock went up by 35% on Friday after the report about the possibility of Google picking up a 5% stake in the telco.

Vodafone Idea denies reports of investment proposal from GooglePicxy
Atom Telecom Friday, May 29, 2020 - 22:02

Vodafone Idea on Friday denied that there was no proposal by Google to pick up a 5% stake in the beleaguered telco. The Financial Times reported on Thursday that Google was to pick up a stake, following which Vodafone Idea’s stock price went up by 35% on Friday.

In a filing with the stock exchanges, Vodafone Idea said that as part of corporate strategy, it evaluates opportunities for enhancing value for stakeholders. “As and when such proposals are considered by the Board of Directors of the Company warranting disclosures, the Company shall comply with the disclosure obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulation”),” it said.

It added that it will keep the exchanges informed.

“Currently, there is no proposal as reported by the media that is being considered at the Board. We wish to reiterate and clarify the Company will comply with SEBI Listing Regulations and duly keep the stock exchanges informed of all the price sensitive information,” it added.

Late last month, the Supreme Court gave partial relief to Vodafone Idea by allowing for a tax refund of Rs 733 crore to the telecom operator. Vodafone Idea had sought a refund of Rs 4,700 crore.

The company has over Rs 53,000 crore in Adjusted Gross Revenue (AGR)-related dues, according to an estimate by the Department of Telecommunications (DoT).

The DoT in March moved the Supreme Court seeking its approval for a 20-year window for payment of around Rs 1.47 lakh crore AGR dues, as adverse functioning of thtelecom firms could have a negative impact on the economy and consumers across the country.

In a regulatory filing, Vodafone Idea earlier paid a sum of Rs 2,500 crore on February 17, 2020 and a further sum of Rs 1,000 crore on February 20 towards the AGR liability.

"The company has paid a further amount of Rs 3,354 crore to the DoT, being the balance part of the principal amount towards AGR liability. Thus the company has paid the full principal amount of Rs 6,854 crore towards the AGR dues," it had said.

According to Vodafone Idea's own assessment, its AGR dues stand at Rs 21,533 crore and the principal amount out of the total dues is Rs 6,854 crore. However, according to the DoT's estimate, the company's overall dues stand at Rs 53,000 crore.

With IANS inputs

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