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The rise and fall of Anil Ambani’s Reliance Communications

<ul><li>The National Company Law Appellate Tribunal dismissed a contempt plea against the <keyword id="54268" type="COMPANY" weightage="20" keywordseo="Reliance-Group">Reliance Group</keyword> head. </li><li>HSBC Daisy had moved the court for Ambani’s Reliance Infratel’s non-payment of dues to the tune of ₹230 crore.</li><li>Meanwhile, Ambani’s <keyword id="46907" type="CITY" weightage="20" keywordseo="Reliance-communications">Reliance Communications</keyword>, which had filed for bankruptcy, is also trying to get back the dues it had paid Ericsson.</li></ul>In a minor but important win for <keyword id="9171" type="PERSON" weightage="20" keywordseo="Anil-Ambani">Anil Ambani</keyword>, The National Company Law Appellate Tribunal (<keyword id="6396355" type="ORGANIZATION" weightage="20" keywordseo="nclat">NCLAT</keyword>) <a href="https://telecom.economictimes.indiatimes.com/news/nclat-dismisses-contempt-petition-against-anil-ambani-over-rcom-payment-default/70346251">dismissed</a> a contempt plea against the Reliance Group head. A minor shareholder HSBC Daisy Investments had moved the court for Ambani’s Reliance Infratel’s non-payment of dues to the tune of ₹230 crore. Reliance Infratel is a part of Reliance Communications which is now undergoing bankruptcy proceedings under the auspices of NCLAT. According to <a href="https://telecom.economictimes.indiatimes.com/news/nclat-dismisses-contempt-petition-against-anil-ambani-over-rcom-payment-default/70346251">reports</a>, the counsel for Reliance – Deloitte – argued that paying the fees would not be possible by Reliance as “it would violate the moratorium on payments during the insolvency proceedings.” In May 2019, Reliance Communications had moved to the National Company Law Tribunal to file for bankruptcy. It had saddled a total debt of ₹46,000 crore, and had been trying to sell assets to pay off some of it. Meanwhile, Ambani’s creditors are trying to get back the ₹580 crore in dues that was paid to Ericsson. They claim that the payment made to Ericsson falls under ‘preferential transaction’ under the Insolvency and Bankruptcy Code. In February, the Supreme Court directed Anil Ambani-owned Reliance Communications to pay Ericsson the dues it owed. It had also said that Ambani would go to jail unless the company clears its dues. At this juncture, Anil’s elder brother and billionaire Mukesh Ambani had bailed him out, just in the nick of time.

Anil Ambani gets a sigh of relief as NCLAT dismisses a contempt plea against him

<ul><li>The share prices of <keyword id="9171" type="PERSON" weightage="20" keywordseo="Anil-Ambani">Anil Ambani</keyword>’s <keyword id="6368073" type="UNKNOWN" weightage="20" keywordseo="Reliance-Communication">Reliance Communication</keyword> and Reliance Naval and Engineering (RNEL) seem to be rebounding as the deadline to bid for its assets nears. </li><li>The shares of Reliance Naval and Engineering (RNEL), which was as low as ₹0.75 — shot up by 10 times at ₹7.70 in a span of 11 weeks. </li><li>While Reliance Communications’ share prices, which closed down at ₹0.57 on November 18, also climbed over 4% on November 26. </li><li>This comes as Airtel and Reliance Jio bids to purchase the assets of the company and its two subsidiaries. </li></ul>The share prices of Anil Ambani’s Reliance Communication and Reliance Naval and Engineering (RNEL) seem to be rebounding — after taking hit for most part of the year. The shares of Reliance Naval and Engineering (RNEL), which was as low as 75 paise— shot up by 10 times at ₹7.7 in 11 weeks. Its market capitalisation stood at ₹565 crore. Last financial year, RNEL recorded a net loss of ₹10,927 crore, while its revenue was at ₹180 crore. RNEL’s subsidiary Reliance Marine — filed bankruptcy<a href="https://www.businessinsider.in/another-anil-ambani-company-reliance-marine-goes-bankrupt/articleshow/70788268.cms"> in August after its debt swelled to ₹1,000 crore.</a> <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[
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 But this is not the only ADA group share that is gaining. The stock of Reliance Communications rose gained by 26% in the last eight days, according to BSE data. The stock has been taking a beating since it went bankrupt in May with massive unpaid dues of around ₹46,000 crore. But as the insolvency process is going on, it received bids from two players — Bharti Airtel and Reliance Jio bids to purchase its assets. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[
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 All of RCom’s assets including spectrum, towers, fibre and data centre and real estate are up for sale. It is reported estimated to be ₹33,000 crore, <a href="https://m.economictimes.com/markets/stocks/earnings/rcom-posts-indias-second-biggest-loss-at-rs-30142-crore/articleshow/72080490.cms">reported</a> Economic Times. But it might fall short of lender claims that came in at around ₹49,000 crore in August. The National Company Law Tribunal is expected to complete the process by 10 January, 2020. RCom in the past had tried to sell assets to various companies, including Reliance Jio, to clear debt but did not crystallise. Its chairman Anil Ambani resigned after the company registered a consolidated loss of ₹30,142 crore for July-September 2019. This was the second highest loss posted by any Indian corporate till date. However, t<a href="https://m.economictimes.com/markets/stocks/earnings/rcom-posts-indias-second-biggest-loss-at-rs-30142-crore/articleshow/72080490.cms">he shareholders rejected his resignation. </a> See also: <a href="http://businessinsider.in/business/news/airtel-ril-3-others-may-submit-bids-for-rcom-assets-on-monday/articleshow/72211930.cms">Airtel, RIL, 3 others may submit bids for RCom assets on Monday</a> <a href="https://www.businessinsider.in/business/news/rcom-lenders-reject-resignation-of-anil-ambani-4-other-directors/articleshow/72207915.cms">RCom lenders reject resignation of Anil Ambani, 4 other directors</a> <a href="https://www.businessinsider.in/business/news/rcom-shares-rally-6-pc-to-hit-upper-circuit-on-asset-sale-buzz/articleshow/72217578.cms">RCom shares rally 6 pc to hit upper circuit on asset sale buzz</a>

Two Anil Ambani Group stocks — which were trading for less than ₹1 — are buzzing again

<ul><li>Reliance Industries' first quarter profit grew 6.8% to ₹101 billion from a year earlier.</li><li>The Mukesh Ambani-owned company's growth was aided by the performance of Reliance Jio and Reliance Retail.</li><li>The company's mainstay petrochemicals business posted a profit of ₹750 billion, down 5.8% from a year earlier. </li></ul>Reliance Industries posted a profit of ₹101 billion, a jump of 6.8% between April and June 2019 from a year earlier largely thanks to the boost from Reliance Jio and Reliance Retail. The Mukesh Ambani-owned company's mainstay petrochemicals business struggled under the pressure from the squeeze in global trends and clocked a fall of 5.8% in profit in the same period. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Refining margins have been muted last few months due to the fall in demand for oil products. Oil product demand growth stalled to nearly zero and there is oversupply of gasoline and naphtha, Morgan Stanley said in a report on July 10. However, According to research firm CGSCIMB, margins from petrochemicals have dropped sharply since April 2019 and the decline has been sharpest in paraxylene, which has flowed through across the polyester chain. That would mean the decline in profit would be pronounced in Reliance mainstay business, the report added. Gross refining margin of $8.1 per barrel in the last quarter was the lowest in 18 quarters. The fear of slump in one of the important business segment has weighed on Reliance's share price in recent months. Even on Thursday (July 18), a day before the company declares the quarterly earnings, the stock of Reliance Industries fell over a percent, that's a loss of over a billion dollars in investor wealth. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 While Jio may be the rising star in Reliance Industries portfolio spanning from oil and gas exploration to petrochemicals to retail, the telecom venture brings its share of anxiety to the investor's mind-- debt. The company's total debt has increased over 58% in the last two years largely due to the investments made in Jio as well as the cash burnt in winning over the millions of customers. Reliance Jio has today managed to raise as much as ₹25,215 crore from a Canadian asset management company, Brookfield’s subsidiary--BIF IV Jarvis India. This will help the company repay some of its mammoth debt accumulated in the process of investing in Jio and offering deep discounts to win over customers. 
 
 
 
 
 
 
 
 
 
 
 
 























 SEE ALSO: <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-jio-may-go-public-next-year-as-debt-for-discounts-starts-to-bite-and-5g-era-beckons/articleshow/69885410.cms"></a><a href="https://www.businessinsider.in/business/mukesh-ambanis-reliance-jio-raises-25215-crore-for-its-invits-from-canadian-fund-brookfield/articleshow/70295640.cms" data-type="tilCustomLink" target="_blank">Reliance Jio raises ₹ 25,215 crore from Canadian fund Brookfield to repay debt</a> <a href="https://www.businessinsider.in/mukesh-ambani-and-anil-ambani-may-restart-reliance-communications-deal-talks/articleshow/70253856.cms" data-type="tilCustomLink" target="_blank">Mukesh Ambani may now have a reason to buy Anil Ambani's bankrupt RCom, say reports</a> <a href="https://www.businessinsider.in/anil-ambani-goes-from-yacht-to-almost-jail-to-bankruptcy/articleshow/69835915.cms">Anil Ambani may not be a billionaire anymore — here's how he lost it all in just a decade</a>

Mukesh Ambani's Reliance Industries profit grows 6.8% even as refining margin hits the lowest in 18 quarters

<ul><li>Refining margins have been muted last few months due to the fall in demand for oil products.</li><li>Oil product demand growth stalled to nearly zero and there is oversupply of gasoline and naphtha, Morgan Stanley said.</li><li>Petrochemicals are the biggest contributor to Reliance Industries' turnover and profits.</li><li>However, the increasing traction for its telecom vertical Jio as well as the retail business may provide some relief.</li></ul> Refining margins have been muted last few months due to the fall in demand for oil products. And that is bad news for Reliance Industries, which will announce its quarterly earnings on Friday, where petrochemicals is the biggest contributor to the company's revenue and profit. However, the increasing traction for its telecom vertical Jio as well as the retail business may provide some relief to Chairman Mukesh Ambani, who has often said in the recent past that "data is the new oil". Oil product demand growth stalled to nearly zero and there is oversupply of gasoline and naphtha, Morgan Stanley said in a report on July 10. According to research firm CGSCIMB, margins from petrochemicals have dropped sharply since April 2019 and the decline has been sharpest in paraxylene, which has flowed through across the polyester chain. That would mean the decline in profit would be pronounced in Reliance mainstay business, the report added. However, Jio and Reliance Retail may come to the rescue, at least partially. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 The fear of slump in one of the important business segment has weighed on Reliance's share price in recent months. Even on Thursday (July 18), a day before the company declares the quarterly earnings, the stock of Reliance Industries fell over a percent, that's a loss of over a billion dollars in investor wealth. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 While Jio may be the rising star in Reliance Industries portfolio spanning from oil and gas exploration to petrochemicals to retail, the telecom venture brings its share of anxiety to the investor's mind-- debt. The company's total debt has increased over 58% in the last two years largely due to the investments made in Jio as well as the cash burnt in winning over the millions of customers. "RIL reported that its consolidated effective net debt reduced by ₹990 billion at end-FY19 due to a demerger of its telecom assets to an special purpose vehicle (SPV). However, the expected financing of the SPV by an Infrastructure Investment Trust (InvIT), which would bring in new investors, is yet to materialise," the CGS CIMB report said. 
 
 
 
 
 
 
 
 
 
 
 
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 SEE ALSO: <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-jio-may-go-public-next-year-as-debt-for-discounts-starts-to-bite-and-5g-era-beckons/articleshow/69885410.cms">Mukesh Ambani’s Reliance Jio may go public next year as debt for discounts starts to bite and 5G era beckons</a> <a href="https://www.businessinsider.in/mukesh-ambani-and-anil-ambani-may-restart-reliance-communications-deal-talks/articleshow/70253856.cms" data-type="tilCustomLink" target="_blank">Mukesh Ambani may now have a reason to buy Anil Ambani's bankrupt RCom, say reports</a> <a href="https://www.businessinsider.in/anil-ambani-goes-from-yacht-to-almost-jail-to-bankruptcy/articleshow/69835915.cms">Anil Ambani may not be a billionaire anymore — here's how he lost it all in just a decade</a>

Mukesh Ambani's Reliance Industries may get some comfort from Jio and Reliance Retail as profits from petrochemicals may slip

<ul><li><keyword id="6355725" type="ORGANIZATION" weightage="20" keywordseo="tata-group">Tata Group</keyword> tops the Brand Finance India 100 Index in 2019 with brand value increasingly by 37% from last year. </li><li>India's biggest banks — State Bank of India (SBI) and HDFC Bank — also made the cut to feature in the top 10. </li><li>Anil Dhirubhai Ambani Group (ADAG) showed the biggest drop, falling 28 positions in the rankings with its brand value falling nearly 65%. </li></ul>The <a href="https://www.businessinsider.in/the-tata-group-has-two-airlines-and-two-more-to-choose-fromair-india-and-jet-airways/articleshow/70129384.cms">Tata Group</a> is India's most valuable brand according to Brand Finance India's top 100 list that's curated from a total of 5,000 companies. The group is one of India's largest with operations all over the world in over 100 countries. Government of India's <a href="https://www.businessinsider.in/lic-officials-under-investigation-by-sfio-for-role-in-ilfs-crisis/articleshow/69263029.cms">Life Insurance Corporation of India (LIC)</a> isn't even a close second with a brand value of $7.22 billion versus Tata's $19.559 billion. Even if you combine LIC's value with <a href="https://www.businessinsider.in/infosys-new-blockchain-banking-solution-doubles-its-partners-in-a-month/articleshow/64511303.cms">Infosys</a>, which came in third at $6.5 million — it's still less than that of the Tata Group. "Tata Group is to be commended for its ability to scale new heights, as it is not only India's most valuable brand, but has also recorded faster growth than any other top 25 brands, with an impressive 37% increase," states David Haigh, CEO of Brand Finance. <div type="image" title="unnamed" msid="70247447" hostid="261" caption="&amp;lt;p&amp;gt;Top 10 most valuable Indian brands 2019&amp;lt;/p&amp;gt;"></div>

 The newbies <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-jio-speeds-up-its-broadband-plan/articleshow/70139677.cms">Mukesh Ambani</a>'s <a href="https://www.businessinsider.in/mukesh-ambani-s-reliance-retail-will-build-an-app-for-kirana-merchants/articleshow/70222354.cms">Reliance Jio</a> which is the fastest growing telecom company, has not made it into the top 10. But according to the Brand Strength Index (BSI) it's currently India's strongest brand. According to the report's methodology, the brand value is only one part of the story, which is how much the company would be worth in the open market. But, the other facet, is a brand's strength which is based on qualitative rather than quantitative measures to peg companies against their competition. The report explains that while Jio may not be the most valuable, it has a strong foundation in place with its <a href="https://www.businessinsider.in/two-years-on-reliance-jio-continues-to-dominate-indian-telecom-market-beating-global-giants/articleshow/67380627.cms">marketing investment</a>s, familiarity, <a href="https://www.businessinsider.in/heres-how-reliance-jio-is-planning-to-increase-its-user-base-and-it-will-definitely-work/articleshow/53298530.cms">loyalty</a>, staff satisfaction and, more importantly, corporate reputation. This is Jio's first time on Brand Finance's top 100 and its accompanied by five other brands debutantes — <a href="https://www.businessinsider.in/baba-ramdev-looks-to-conquer-the-fashion-world-with-patanjali-clothing/articleshow/63643970.cms">Patanjali</a>, Chennai Petroleum, Indian Overseas Bank, <a href="https://www.businessinsider.in/csd-the-most-profitable-retail-chain-in-india/articleshow/53738799.cms">DMart</a>, and Max Life Insurance. Banking boom This year's top 100 featured a total of 14 Indian banks. India's three largest banks — <a href="https://www.businessinsider.in/sbi-overstated-profits-for-3-years-reveals-rti/articleshow/70145021.cms">the State Bank of India</a> (SBI),<a href="https://www.businessinsider.in/hdfc-hiring-5000-professionals-with-annual-package-of-400000-includes-training-program/articleshow/70083666.cms"> HDFC Bank</a>, and <a href="https://www.businessinsider.in/how-icici-became-indias-biggest-bank-here-are-some-interesting-facts-about-the-bank/articleshow/53653276.cms">ICICI Bank</a> — led brand values in the sector with SBI coming in fourth and HDFC in sixth position. The upskilling at banks to integrate digital services like mobile banking and internet banking has helped banks keep pace with the competition. Heightened brand values are expected in the future as well as more is invested into bringing in new infrastructure, technology and innovative customer tools. Winners and losers The Mahindra Group featured in the top 5 for the very first time with its brand value appreciating by 35% to $5.2 billion. It has been working its way through the Indian market but also building in roads in more mature markets like the US, with its IT and financial services businesses. The Anil Dhirubhai Ambani Group (ADAG), on the other hand, fell by 28 ranks, losing 65% of its brand value. The steep drop in its value is attributed to a<a href="https://www.businessinsider.in/anil-ambani-adag-stocks-this-week-reliance-power-reliance-infrastructure-and-reliance-communications/articleshow/69773095.cms"> continuous erosion</a> in its shareholder value. Even with an illustrious last name, the group doesn't invoke the trust it once used to. See also: <a href="https://www.businessinsider.in/tcs-wipro-and-hcl-are-among-the-worlds-most-valued-it-brands/articleshow/67670849.cms">TCS is now the world’s third most valued IT service brand</a> <a href="https://www.businessinsider.in/these-are-the-top-10-most-valuable-brands-in-the-world/articleshow/69747256.cms">These are the top 10 most valuable brands in the world</a>

The Tata name is worth $19.5 billion — more than the brand value of LIC and Infosys put together

<ul><li>Jio’s predatory data tariffs are still 25 to 30% lower than that of Airtel and Vodafone Idea. </li><li>Airtel and Vodafone’s joint market share is expected to drop 25% to 27% each. </li><li>The total debt of the top three telecom players — Reliance Jio, Bharti Airtel and Vodafone Idea — is as high as ₹3.9 lakh crore. </li></ul> The telecom war that <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s Reliance Jio started will rage on for another two years, according to a report by India Ratings. The stress of investments and the lack of revenues due to deep discounting is hurting the entire industry, including Jio. The total debt of the top three telecom players — Reliance Jio, Bharti Airtel and Vodafone Idea — is a massive ₹3.9 lakh crore, according to the report. That’s almost <a href="https://www.businessinsider.in/sensex-today-jumps-150-points-after-rbi-move-to-transfer-surplus/articleshow/70852202.cms">twice the amount the </a>Reserve Bank of India gave the Indian government, which is ₹1.76 lakh crore this week. The debt run up by the three war ravaged players is also almost half of the country’s total fiscal deficit which is<a href="https://www.livemint.com/news/india/fiscal-deficit-crosses-61-of-budgeted-target-in-first-three-months-of-fy20-1564574137744.html"> pegged at around</a> ₹7 lakh crore for 2019-20. Fiscal deficit is the amount of money the government is falling short of, to carry on its planned expenditure. RJio’s market share will go up 40% to 45% It doesn’t look like the debt is going away anytime soon. Jio’s predatory data tariffs are still 25 to 30% lower than that of Airtel and Vodafone Idea. India Ratings expects RJio’s market share to increase 40% to 45% over the next two years. At the end of the last financial year, it stood at around 30%. “Airtel and Vodafone’s joint market share is expected to drop 25% to 27% each,” the report predicted. Jio’s already declared that it’s targeting 50% market share in total telecom revenues, without mentioning a timeline. At his annual general meeting, Ambani promised Reliance Industries’ shareholders of Jio’s growth. The company already has around 340 million customers but is aiming for more. “The potential for growth is immense, and half a billion customers is now well within our reach,” Ambani said. No free cash flow available till 2021-22 As a result of high debt and continuous losses, the telecom players will remain structurally weak for the next two years, says the report. This means they will have no or low free cash in hand. “These companies will continue to rely on refinancing or capital infusion. However, near-term liquidity is supported by large cash levels available post capital infusions (Vodafone Idea, Airtel) and continued financial flexibility due to strong parentage (Jio),” the report said. From here on, there are a few things that can change the fortunes of the flailing telecom sector starting with Jio’s pricing strategy. Any change and possible increase in tariffs and subsequent response by other two players, will pave the way for recovery in the telecom sector. SEE ALSO <a href="https://www.businessinsider.in/the-difference-between-mukesh-ambanis-jio-and-ani-ambanis-reliance-communications/articleshow/70869465.cms">Mukesh Ambani's strategy with Reliance Jio is avoiding Anil Ambani's mistakes with RCom</a>

Top three telecom companies’ debt is at ₹3.9 lakh crore — that’s half of India’s fiscal deficit

Intense tariff war and high taxes are expected to squeeze Indian telecom operators, leaving a gaping Rs 1,20,000 crore deficit between the industry's earnings and its debt/payment commitments this year, says debt-laden Reliance Communications, according to PTI. With annual interest payments, loan re-payment obligation, spectrum-related outgo and capex expected to add up to a Rs 1,62,000 crore tab, the operators could find it tough to metheir debt and payment needs with Rs 43,000 crore of EBITDA or operating profits in 2017-18. The earnings before interest, tax, depreciation and amortisation (EBITDA) is a measure of a company's operational performance. "The reduced EBITDA (Rs 43,000 crore in FY18) of the industry is insufficient to cover the existing debt obligations and deferred payment commitments," RCom cautioned in its latest investor presentation. The gross liability of the telecom industry on account of debt as well as payments related to radio waves amounted to a whopping Rs 7,75,000 crore, as on March 31, 2017. Stating that 2016-17 recorded the first-ever decline in industry's revenue, RCom said the combined revenue went down to an estimated Rs 2.10 lakh crore. This resulted in fall in EBITDA by Rs 12,000 crore, meaning significantly lower operating cash flows for telcos. "Further in FY18 (this fiscal year), the revenue is estimated to decline further by Rs 25,000 crore," RCom said referring to the industry's weak financial metrics. RCom Chairman <keyword id="9171" type="PERSON" weightage="20" keywordseo="Anil-Ambani">Anil Ambani</keyword> last week stepped in to restore investor confidence after the company's shares were hammered in the wake of poor fourth quarter and FY17 showing, and debt downgrade by rating agencies including Moody's, Fitch, ICRA and CARE. In a rare public appearance, he said that the debt-laden RCom has been given a breather of seven months to service its debt. This is a part of a strategic debt restructuring (SDR) programme that a consortium of lenders has invoked for the company, that is saddled with Rs 45,000-crore debt. Like its larger rivals, RCom too has been hit hard by intense price war unleashed by <keyword id="6354504" type="UNKNOWN" weightage="20" keywordseo="Reliance-Jio">Reliance Jio</keyword>, owned by Anil Ambani's elder brother and India's richest man <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>. RCom's presentation noted that the voice revenue per minute for the industry has seen a 25 per cent decline in the last two quarters, while data revenue per MB have fallen by 40 per cent. It cautioned that the sector could be staring at 30,000 to 40,000 job losses over the next 12-18 months, compared to 10,000 job cuts last year. Underlining the high incidence of taxation, RCom said telecom is "one of the highest taxed sectors" of the Indian economy and that no other country in the world has such high tax burden on telecom sector. The cumulative tax incidence adds up to about 33 per cent (of revenue) in India compared to 20 per cent in EU, 22 per cent in China and 17 per cent in the US. Incidentally, India, with over 1.16 billion mobile users is the second largest telecom market in the world, after China. Noting that the government has set up a panel to resolve the financial crisis in the telecom sector, RCom said industry wants deferment of payment liability with respect to levies (imposed by the <keyword id="150664" type="ORGANIZATION" weightage="20" keywordseo="telecom-department">Telecom Department</keyword>) and spectrum charges by three years. The industry also wants a 3-year moratorium on service tax/GST, for short term cash flow relief. Other demands include reduction of licence fee to five per cent (from 8 per cent), and flat one per cent spectrum levy. Interestingly, at a time when telecom regulator is reviewing the call connect charges, RCom said that termination rate should be discontinued, given the free or low voice tariffs environment.

Intense tariff war is bleeding telecom operators. Here’s the proof

<ul><li>India's second largest telecom operator by subscribers had bought spectrum from the now bankrupt Videocon for about ₹4,400 crore four years ago.</li><li>Since then, the <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> has ordered that companies that own spectrum will have to pay levies not just on their revenue from telecom operations but on the entire company's revenue. </li><li>Companies like Airtel and Vodafone are now battling a case in the Supreme Court seeking time to cough up a cumulative sum of ₹1.4 lakh crore.</li></ul>Airtel, India's second largest telecom operator by subscribers, had bought spectrum from the now bankrupt Videocon in six circles for about ₹4,400 crore four years ago. Investors fear the deal may prove a lot costlier after a bench of Supreme Court judges reportedly observed that the Sunil Mittal-owned company may have to cough up dues owed to the government by Videocon too. The fears have dragged Airtel shares down on Monday (Aug 23) by a little less than 2%, taking the one-month tally to a fall of nearly 10%. <div type="image" title="Airtel share price" msid="77715445" hostid="261" caption="&amp;lt;p&amp;gt;A bench of Supreme Court judges observed that the Sunil Mittal-owned company may have to cough up dues owed to the government by Videocon too. &amp;lt;/p&amp;gt;"></div> Since the deal between Airtel and Videocon, the Supreme Court has ordered that companies that own spectrum will have to pay levies not just on their revenue from telecom operations but on the entire company's revenue. Companies like Airtel and Vodafone are now battling a case in the Supreme Court seeking time to cough up a cumulative sum of ₹1.4 lakh crore (nearly $20 billion). <div type="image" title="image" msid="77715166" hostid="261" caption="&amp;lt;p&amp;gt;Since the deal between Airtel and Videocon, the Supreme Court has ordered that companies that own spectrum will have to pay levies not just on their revenue from telecom operations but on the entire company&amp;#39;s revenue. &amp;lt;/p&amp;gt;"></div> It's not just Airtel, the Supreme Court has made <a href="https://www.financialexpress.com/industry/agr-dues-reliance-jio-may-have-to-pay-for-rcom-and-airtel-for-aircel/2062226/" data-type="tilCustomLink" target="_blank">a similar observation for Reliance Jio</a>, India's largest mobile service provider owned by Asia's richest man Mukesh Ambani, which had bought spectrum from the now bankrupt Reliance Communications, which owned by his younger brother Anil Ambani. The court has asked the Department of Telecom (DoT) to file details of spectrum shared by insolvent companies, dues that arose on account of shared spectrum, and if relevant dues have been paid. Shareholders of Airtel and Reliance Industries (which is the holding company for Jio) wait anxiously. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/policy/economy/news/tribute-to-arun-jaitley-from-finance-minister-nirmala-sitharaman-ahead-of-gst-council-meeting/articleshow/77713182.cms">Finance Minister Nirmala Sitharaman’s tribute to the late Arun Jaitley is also coming ahead of a tough GST Council meeting where states will ask for money</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/future-retail-shares-tank-as-a-crucial-payment-deadline-expires/articleshow/77713123.cms">Future Retail shares tank as a crucial payment deadline is set to expire</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/politics/india/news/from-priyanka-gandhi-vadra-to-manmohan-singh-these-are-the-stated-views-of-congress-working-committee-members-on-sonia-gandhis-resignation/slidelist/77713740.cms">From Priyanka Gandhi Vadra to Manmohan Singh, these are the stated views of Congress Working Committee members on Sonia Gandhi's resignation</a>

Airtel stock is getting knocked down as investors fear it may have to pay Videocon's dues

The news of Indian cricketer <keyword id="6354486" type="PERSON" weightage="20" keywordseo="Virat-Kohli">Virat Kohli</keyword> and his actor girlfriend <keyword id="376" type="PERSON" weightage="100" keywordseo="Anushka">Anushka</keyword> Sharma getting engaged has created enough buzz. The superstar couple is currently holidaying at a spa resort, Ananda, in the <keyword id="52569" type="CITY" weightage="20" keywordseo="himalayas">Himalayas</keyword> near <keyword id="47181" type="ORGANIZATION" weightage="20" keywordseo="Rishikesh">Rishikesh</keyword>, and is speculated to get engaged on January 1. 
 Celebrities like <keyword id="6357912" type="PERSON" weightage="20" keywordseo="amitabh-bachchan">Amitabh Bachchan</keyword> and Jaya Bachchan as well as industrialist <keyword id="9171" type="PERSON" weightage="20" keywordseo="Anil-Ambani">Anil Ambani</keyword> along with wife Tina arrived at the spa resort, adding further fuel to the speculations. They reached Dehradun's Jolly Grant airport in a chartered flight and headed for Ananda. 
 
The hotel is off-limits for all non-guests and reportedly, staff had also been reportedly told to switch off phones to prevent leakage of any information. 
 
The Tehri district police under whose jurisdiction the area falls, claimed that they had not been contacted for additional security at the resort. 
 
"We have only come to know that the celebrities would be staying here and will leave after a few days," N S Napalchiyal, superintendent of police, Tehri, told TOI. 
 Anushka and Virat, recently, had conducted a pooja for continued success and prosperity at <keyword id="4012307" type="UNKNOWN" weightage="20" keywordseo="anant-dham">Anant Dham</keyword>, an ashram located at Ambuwala village near <keyword id="6355106" type="COMPANY" weightage="20" keywordseo="Haridwar">Haridwar</keyword> and they also spent a few hours with the ashram's chief preceptor Anant Maharaj. 
 The couple had arrived in <keyword id="44522" type="CITY" weightage="20" keywordseo="Uttarakhand">Uttarakhand</keyword> on December 24 and had directly gone to the spa resort where they celebrated Christmas. They did not interact with fans many of whom had gathered at the airport as well as outside the spa resort choosing to post only a few pictures of their stay on social networking sites. 
 
However, Anushka's 82-year-old paternal grandmother Urmila Sharma, who stays in Dehradun, said that she isn’t aware of any engagement and she also said that she likes Virat and would be really happy if the two decides to get married.

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