Vodafone Idea shares were trading higher as focus shifted to the stock ahead of the One-time Spectrum Charge (OTSC) case hearing in the Supreme Court today.
The stock gained over 6 percent to Rs 13.4 per share.
The OTSC issue has been affecting the telecom sector since 2008 when the government decided to levy the amount retrospectively, leading to a demand of Rs 40,000 by the Department of Telecommunication.
The government in October had sought time from the apex court to reconsider continuing with its appeal against a telecom tribunal's order that said the OTSC could be levied prospectively, not retrospectively.
Despite government measures, most telecom service providers are suffering losses and a one-time spectrum charge would lead to a financial burden of Rs 40,000 crore, the DoT had told the apex court in October when it sought time to reconsider its decision to levy the amount.
If the government decides to withdraw the charges, Bharti Airtel and Vodafone Idea will benefit from it. In the hearing today, the government will clarify if it has made the decision to withdraw the demand.
At 10:43 am IST, the Vodafone Idea shares were trading Rs 13.12, 3.5 percent higher on the Bombay Stock Exchange. The stock has been trading higher since the company announced tariff hikes to the tune of 22-25 percent. In the past five days, the stock has risen over 12 percent.
First Published: Dec 2, 2021 12:58 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM
Wine shops and bars to remain shut for 4 days in Mumbai in 4 weeks, check details
May 15, 2024 7:52 PM
INDIA bloc will win majority seats in Bihar, says Tejashwi Yadav
May 15, 2024 4:20 PM