New Delhi: Despite the potential for windfall gains, the government has decided not to cut bet In vodafone idea As a company that has seen a surge in share prices In the last few months, takes the final steps fund raising Which will happen on 27th February.
With 33%, the government remains the largest shareholder in the company, ahead of industrialist Kumar Mangalam Birla’s Aditya Birla Group and UK’s Vodafone Plc. However, the government feels that “the time has not yet come for full or partial disinvestment” of its stake, especially since the funds the company will receive are to be used for the launch of 5G services and reducing debt. .
“There is no plan to liquidate the government’s stake in the company,” sources said. He said any decision on this front “will be taken at a later date only.” The government believes that the company should work out a credible revival plan before deciding on an exit.
Vodafone Idea, which has a debt of around Rs 2.2 lakh crore and is grappling with huge losses, has, however, seen its share prices rise 150% in the last year ever since the government decided to take stake in exchange for futures. An increase of more than 100 per cent has been observed. Its outstanding interest was to be received. Vodafone Idea shares closed at Rs 17.5 on Friday, compared to the closing share price of Rs 6.85 at the time of its entry into government on February 3 last year.
For the government, this translates into handsome returns. It had taken a big risk when it bought shares at Rs 10 a piece last year (though the market price then was Rs 6.85) because the Companies Act states that equity cannot be purchased below par.
Vodafone Idea had announced fund-raising plans on February 22, which analysts believe is the first step towards a “multi-billion-dollar infusion” for the company, similar to that of rivals Reliance Jio and Airtel. Due to which customers are also being lost.
With 33%, the government remains the largest shareholder in the company, ahead of industrialist Kumar Mangalam Birla’s Aditya Birla Group and UK’s Vodafone Plc. However, the government feels that “the time has not yet come for full or partial disinvestment” of its stake, especially since the funds the company will receive are to be used for the launch of 5G services and reducing debt. .
“There is no plan to liquidate the government’s stake in the company,” sources said. He said any decision on this front “will be taken at a later date only.” The government believes that the company should work out a credible revival plan before deciding on an exit.
Vodafone Idea, which has a debt of around Rs 2.2 lakh crore and is grappling with huge losses, has, however, seen its share prices rise 150% in the last year ever since the government decided to take stake in exchange for futures. An increase of more than 100 per cent has been observed. Its outstanding interest was to be received. Vodafone Idea shares closed at Rs 17.5 on Friday, compared to the closing share price of Rs 6.85 at the time of its entry into government on February 3 last year.
For the government, this translates into handsome returns. It had taken a big risk when it bought shares at Rs 10 a piece last year (though the market price then was Rs 6.85) because the Companies Act states that equity cannot be purchased below par.
Vodafone Idea had announced fund-raising plans on February 22, which analysts believe is the first step towards a “multi-billion-dollar infusion” for the company, similar to that of rivals Reliance Jio and Airtel. Due to which customers are also being lost.
