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Vodafone-Idea’s share price has fallen 86.3% in 12 months
Vodafone-Idea’s share price took another hit today, as the company was left reeling from a recent Supreme Court decision, that will leave it owing billions of dollars to the Department of Telecoms.
This week’s ruling by the Supreme Court will force Indian telcos to pay back $13 billion of unpaid dues to the DoT. Vodafone Idea is expected to have to repay around $6 billion of that amount.
The company’s share price fell by 35 per cent in the two trading sessions since the court ruling, to stand at just 3.66 rupees per share.
Vodafone Idea’s share price was 26.91 rupees, in November 2018, but the country’s hyper competitive market conditions have seen Vodafone Idea’s stock lose 86.3 per cent of its value in just 11 months.
“Clearly this judgment has significantly damaging implications for India’s telecom industry, which is already reeling under huge financial stress and is left with only four operators. Significant investment of several billion dollars has been made in creating world class networks," Vodafone Idea told Indian news site, Business Standard.
India remains one of the world’s most competitive telecoms markets.
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