Vodafone Idea Share Analysis: What options does company have? Zee Business lists out some – Take a look!

Vodafone Idea Limited shares have been falling over the last four trading sessions. The shares were down almost 1.7 per cent on Thursday and ended at Rs 4.55. The fall has been steep since the news about Aditya Birla Group chief Kumar Mangalam Birla offering to give away his holding in the joint venture with Vodafone to any public sector or domestic entity surfaced

Zee Business brings for its readers, the options that Vodafone Idea has before it amid all the developments. Source: Reuters

Vodafone Idea Limited shares have been falling over the last four trading sessions. The shares were down almost 1.7 per cent on Thursday and ended at Rs 4.55. The fall has been steep since the news about Aditya Birla Group chief Kumar Mangalam Birla offering to give away his holding in the joint venture with Vodafone to any public sector or domestic entity surfaced.

Zee Business brings for its readers, the options that Vodafone Idea has before it amid all the developments.

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Vodafone Idea Options

- Filing a petition in the Supreme Court and seek some relief

- Relief in terms policy intervention on the issue of Adjusted Gross Revenue (AGR)

- if a merger or acquisition is doen with any private or public company

- The company in which Vodafone Idea is merged is give some relied to save the company

- If still no solution comes to its rescue than a voluntary bankruptcy announcement

Contents of Kumar Mangalam Birla

- The relief is sought from the government on three issues

- Clarification on AGR liability, floor price above the operational cost

- Long moratorium should be given on the payment of spectrum charges

- Ready to handover stakes to any government copaby or financial institution

- Will relinquish holding in the interest of 27 cr customers

- The government policies should be supportive

- Compant tried to raise Rs 25,000 cr but failed

What does this mean for Vodafone Idea?

- The cut-throat competition not allowing company to raise tarrifs

- Failure to increase tariffs having an adverse impact on the financials of the company

- There is a fear that only few companies would remain creating a monopolistic situation

- A monopolistic situation would lead to harassment of customers

Decoding the share price decline of Vodafone Idea (Vi), Zee Business Managing Director Anil Singhvi says the recent developments related to the company is distressing not only to company’s shareholders but also for its customers and also raises its ongoing concern ahead.

In the last nine sessions, the telecom company’s shares have declined over 53 per cent from Rs 9.75 per share on the BSE. While it alone on Thursday plunged by around 25 per cent to hit a 52-week low of Rs 4.55 per share on the BSE, as the chairman of Vi, Kumar Mangalam Birla resigns yesterday.

The managing editor mentions that the way stock has been declining, it seems the shareholders were sensing such kind of move. He further adds, the resignation of Birla gives an indication that the Birla group won’t infuse any more funds in the company, which eventually will have to shut its shop.

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