Motilal Oswal: AGR Case Reaches Closure; Nudging The Sector To Duopoly

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.The long-drawn adjusted gross revenue (AGR) liability court battle seems to have reached some conclusion as the Supreme Court gave its verdict on timelines.It allowed for a 10-year repayment period for the AGR liability (at 8% marginal cost of funds-based lending rate), with 10% of total dues to be paid upfront on March 31, 2020 and the rest in annual payments from March 2022.Positively, for Bharti Airtel Ltd. /RJio, the AGR liability of partly acquired/shared spectrum of Aircel Ltd. (Rs 124 billion) / Reliance Communications Ltd. (Rs 252 billion) is to be decided by the National Company Law Tribunal and therefore restricts the liability.However, the fully acquired spectrum of Videocon Industries Ltd. (Rs 14 billion) would fall on Airtel.As per Bharti Airtel’s counsel, the option of review and curative petitions is available with the telcos for two purposes:a) the elimination of spectrum usage charge (SUC) -related AGR liability (reducing the amount by approximately 40%) – as the case was only related to license fee and b) payment timelines.We see limited grounds for this..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: AGR Case Reaches Closure; Nudging The Sector To Duopoly

Motilal Oswal: AGR Case Reaches Closure; Nudging The Sector To Duopoly

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