Discussion Govt of India now holds 48.99% stake in Vi (Vodafone Idea)

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Esmail said:
As per ET Telecom the promoter share after this transfer of stake has reduced from 38.8% to 25.57% so the remaining stake seems to have come from some other sources not the promoter holding.
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what is the possible method - Vi buying back shares from market or some big shareholder @ Rs. 7 and selling @ Rs. 10 to Govt?
 
sng_shivang said:
I will wear my tin foil hat here. I think this is all planned to go like Air India sale way. If the government didn't supported Vi, they would've shut shop long back as the debt is simply too much and a lot of PSB will take a hit on their balance sheet not to mention the competition elimination in India.

I think they will raise it more and more and eventually sell the company keeping the liabilities like AGR and all so the debt is siginificantly reduced for the next owner. This way, they will escape the controversy that people bring "government is waiving 1000s of crores of debt" and etc etc. This is what they did with Air India to make it attractive to sell to Tata.

I also don't think they can merge it into BSNL. Heck, they couldn't even merge MTNL to BSNL considering the operational reasons of both companies (MTNL is stock market listed and in severe debt). BSNL with it's unions and all, forget that government will even think of doing the merging and all.
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Sahi Pakda bhai... Translation : You got it right bro. But not Tata this time.

Your analysis is perfect even for merger with BSNL not going to happen. Because if VoId and BSNL got merged, then it will be like having 2 BSNL. "TWO BSNL IS TOO MANY FOR INDIA".
Esmail said:
As per ET Telecom the promoter share after this transfer of stake has reduced from 38.8% to 25.57% so the remaining stake seems to have come from some other sources not the promoter holding.
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Non promoter selling their stake bought with their hard earned money to help VoId??? OK, I know only 2 persons in this forum, who will do that. ;)

Seriously speaking, may be Promoters are selling their stake as per the payment to Govt comes over-due. Say now just Rs6,000 Crore. Next qtr / time Rs7,500 Crore, etc...
WizarD said:
so, after this transfer, how Vi will find money for its operations and future expansions like 5G, network improvement etc.?
The monthly revenues may not be able to cover those.
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All they are trying is getting Rs25,000 crore from Banks as Loan for network expansion. Govt is trying to help, but Banks are skeptical, mainly due to the promoter selling stakes and not taking enough measures.
WizarD said:
Govt bought the shares at a much higher price (premium) than current market, is it normal practice or just helping the Birlas?
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No worries, as I said earlier, the share value will fly to Rs15 in no-time.
 
kanagadeepan said:
Non promoter selling their stake bought with their hard earned money to help VoId??? OK, I know only 2 persons in this forum, who will do that. ;)
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Revised shareholding:
Promoter group 25.5% approx
ABG 9.4% approx
Vodafone group 16.1% approx

Note: As clarified with Vi PR person
 
Wow! So from being so many years in market Vodafone and Idea choose to do nothing.
Many plans are now cheaper than Jio but, coverage is literally reduced.
 
WizarD said:
Who are these 'Promoter group ' - Public shareholders?
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No, Promotor group is a term used to address the combined holding of Aditya Birla group and Vodafone PLC. I have mentioned the combined holding of both as well as the individual holdings so 9.4+16.1=25.5
 
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