Indus Towers shares fall 13% after SC rejects re-computation in AGR case

Shares of Indus Towers on Thursday fell 13% to the day's low of Rs 366.30 on BSE following the Supreme Court ruling in the Adjusted Gross Revenue (AGR) case by the telecom companies requesting a re-computation.

The apex court reaffirmed its decision on the AGR ruling against telecom companies, maintaining the full amount of the AGR demand.

Last year, Airtel and Vi had requested the apex court to hear in the "open court" their curative petitions against an earlier order, which rejected the pleas for rectification of what they called arithmetical errors in DoT's calculation of AGR dues.


For Vi, in 2019, the Supreme Court confirmed the AGR demand raised by the Department of Telecom which translated into a burden of Rs 58,000 crore. With the interest levy, that burden has now gone up to Rs 70,320 crore as of the end of FY24.

In its report earlier this month, global brokerage firm Goldman Sachs had downgraded Indus Towers to 'Sell' from its earlier rating of 'Neutral', reducing the target price to Rs 220 while it also gave a target price of just Rs 2.5 on Vi and signaled a downside potential of as deep as 83%.

Also read: Bajaj Housing Finance shares tumble 11% in 2 days. Should you buy, sell or hold?

While commenting on Indus Towers, the global brokerage firm said that there is a disconnect between fundamentals and valuations and that it sees Indus' re-rating as overdone with limited visibility on the medium/long term growth outlook for the company.

The global brokerage firm also stated that it would get incrementally constructive on Indus Towers if Vodafone Idea is able to repair its balance sheet.

The shares of Indus Towers have gained 108% in the last one year while increasing by nearly 90% in the current year so far.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Econom