Vodafone Idea Shares In Focus After Fresh GST Setback — Here's All You Need To Know

Shares of Vodafone Idea will be in focus heading into trade on Friday after yet another key development for the cash-strapped telecom giant.

Vodafone Idea has been a subject of much discussion surrounding its AGR-linked dues and widespread media reports claiming that the Cabinet has offered the telco a five-year interest-free moratorium.

The stock faced immense pressure on Wednesday as reports of a five-year moratorium fell well below the street expectations of at least a 50% AGR due waiver.

Vodafone Idea, on the same day, confirmed after close that it had received no such communication. The company also confirmed receiving over Rs 5,800 crore from promoter Vodafone PLC.

Shares of VI closed with gains of more than 8% in trade on Thursday, reclaiming significant drawdown the stock had faced the day before.

A key development surrounding Vodafone Idea took place on Thursday when the telecom company received a Rs 638 crore GST penalty order from the Office of Additional Commissioner, Central Goods and Service Tax, Ahmedabad.

In an exchange filing, Vodafone Idea said it disagrees with the order and will take legal action, but the uncertainty could weigh on the company heading into trade this Friday.

"The maximum financial impact is to the extent of tax demand, interest and penalty levied. The company does not agree with the order and will take appropriate legal action(s) against the same," the company said in an exchange filing.

Out of 22 analysts tracking the company, five maintain a 'buy' rating on VIL stock, seven recommend a 'hold,' and ten suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target is Rs 8.96.