Vodafone Idea stock in focus as Centre plans to acquire its stake after price stabilizes

9 Sep 2022 , 12:06 PM

Vodafone Idea Limited (VIL) stocks in focus on Friday’s trading session after the announcement that the government will acquire a stake in debt-ridden telecom firm.

Accordingly, the telecom-industry has decided to opt for converting about Rs16,000 crore of interest liability payable to the government into equity which will amount to around 33 % stake in the company while promoters’ holding will decline to % from 74.99%.

Notably, the Central Government will acquire th stake after the share price of the company stabilises at Rs10 or above. The board of Vodafone Idea has offered a stake to the government at a par value of Rs 10 per share. Also, the finance ministry had cleared the proposal to acquire stake in VIL in July.

An official source told PTI, “there is a SEBI norm that the acquisition should take place at par value. DoT will clear the acquisition process after VIL shares stabilize at Rs10 or above.”

Further, according to the sources and  media reports, the telecom operator also repaid a debt of Rs2700 crore to State Bank of India (SBI).

On Friday, Vodafone Idea was trading at Rs9.64 per share lower by Rs0.05 or 0.52% as against previous closing of Rs9.69% on the BSE. Today, the stock opened at Rs9.80 per share and previously, the scrip ended at Rs9.69 on the BSE platform.

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