Bharti Airtel rallies 9% in two days after SC’s verdict on AGR dues

Shares of Bharti Airtel climbed 2 per cent to Rs 559 on the BSE on Wednesday, rallying 9 per cent in the past two trading days after the Supreme Court allowed staggered payments towards settlement of Adjusted Gross Revenue (AGR) dues.

The court, on Tuesday, allowed staggered payments towards settlement of AGR dues over 10 years period, starting April 1, 2021. Also, the telcos are asked to pay 10 per cent of AGR associated dues by March 31, 2021. The decision on AGR dues has come after several rounds of hearings by the Supreme Court.

“The industry will need higher ARPUs from the current level to pay the AGR dues in the 10 year timeline. The industry average revenue per user (ARPU) is estimated to have stood at Rs 82 in the June 2020 quarter.