New Delhi. Vodafone Idea Limited's shares fell sharply in September, with the company's shares falling by 33 percent. This is the biggest decline since October 2019, causing the company's market capitalization to decline by more than Rs 34,000 crore. On September 30, the company's shares closed at Rs 10.36 per share, while at the beginning of the month, it was Rs 15.64 per share. With this decline, Vodafone Idea's market capitalization fell from Rs 1.06 lakh crore to Rs 72,000 crore.

The main reason for this fall in shares was the Supreme Court rejecting the petition of telecom companies for recalculation of AGR (Adjusted Gross Revenue) dues. Vodafone Idea had sought three major reliefs in this case: rectification of calculation errors, limiting the penalty to 50%, and limiting the interest rate on a penalty to 2% above SBI's prime lending rate.

Possibility of financial crisis and increasing losses
According to a report by IIFL Securities, Vodafone Idea's cash flow problems may increase further due to a lack of relief from the court. On the contrary, Bharti Airtel may benefit from this decision, as it may allow it to increase its market share. However, the prospects of raising debt in the future for Vodafone Idea have become uncertain, which is very important for the company's capital expenditure.

Goldman Sachs report and share price
On September 6, Goldman Sachs maintained its negative outlook on Vodafone Idea. They said that even though the company has recently raised capital, the company's market share is continuously declining. Goldman estimated that Vodafone Idea's market share could fall by 300 basis points (3 percent) in the next 3-4 years. In addition, the company may be investing up to 50% more in capital expenditure (capex) than its competitors. However, if a positive scenario is seen, where AGR dues are reduced by 65%, tariffs increase steadily and there is no near-term payment pressure from the government, then Vodafone Idea's share price could reach Rs 19