12.1 C
Sunday, January 23, 2022

Voda-Idea shares fall 17%, negative response from investors regarding government stake

Market Outlook: Today there is a sharp decline in Vodafone-Idea shares in intra-day.

Market Outlook: Today (January 11) there is a sharp decline in the shares of Vodafone-Idea in intra-day. This is being understood as the reaction of investors to the company’s decision regarding government stake. In a BSE filing, the company has informed that its board has approved the conversion of outstanding AGR (Adjusted Gross Revenue) and spectrum auction installations interest into equity. With this decision, the government will have about 36 percent stake in the telecom company Voda-Idea. Today, the trend of investors is looking negative regarding this and it slipped up to 17 percent in intra-day on NSE. On Monday, its shares closed at a price of Rs 14.75.

D-SIB: These three banks are important for the country’s GDP, if they sink, it will be a big blow to the economy, understand in details here

Government will have majority stake

Voda-Idea has informed in the filing that in the meeting of the company’s board of directors on Monday (January 10), the proposal to convert the interest related to spectrum auction installations and AGR dues into equity has been approved. According to the BSE filing, the Net Present Value (NPV) of this interest is about Rs 16,000 crore. After converting the dues into equity, it is believed that the government will have 35.8 percent stake in the outstanding shares of the company and the promoters of Vodafone Group will hold 28.5 percent and Aditya Birla Group will hold 17.8 percent i.e. the government’s telecom company Vodafone- There will be a majority stake in Idea.

Bharti Airtel has chosen the second option

Private sector telecom giant Bharti Airtel had informed a few days ago about important decisions regarding AGR dues and interest due on spectrum. Airtel had informed in a regulatory filing that it would not exercise the option to convert arrears on AGR and spectrum interest into equity. The option to convert the dues into equity has been given by the central government to the telecom sector companies under the reform package, on which the company informed about its decision last week.

Airtel will not convert the dues into equity, the government had given the option under the reform

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.


Business Khabar
We aim to constantly bring to you all the latest and most updated industry news across all major categories. With a wide variety of topics and categories under our umbrella, we bring to you the latest news and activities in the top sought areas of public interest.
Latest news
- Advertisement -
Related news
- Advertisement -