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

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RummaanKhan said:
1-3+N78.


I don't think G85 supports it. Last Moto which supported that 1-3-8-41 was Edge 30 pro
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FTNPHgM.png

Speeds back to normal. What about Edge 50 Pro?
 
Esmail said:
I'm interested in seeing how much stake each of the promoters have given up to the government and what the final shareholding pattern looks like after the transfer of stake to the government.
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1. How will this impact the shareholding public?
2. can GoI buy share from market and raise the shareholding to 50.1% or 51% and take control and appoint chairman of the board?
3. Do Vi actually hold this many shares to transfer to government?
4. Why no share value re-evaluation is not required before this transfer - the share value may not cover the pending dues.
 
I have answered almost all your questions in the first page.
WizarD said:
1. How will this impact the shareholding public?
2. can GoI buy share from market and raise the shareholding to 50.1% or 51% and take control and appoint chairman of the board?
3. Do Vi actually hold this many shares to transfer to government?
4. Why no share value re-evaluation is not required before this transfer - the share value may not cover the pending dues.
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kanagadeepan said:
So, they are giving away 26.39% Stake for the upcoming smallest of the tiniest problem? After this, the promoters will have just 10.93% stake of (current) value around just Rs5314 Crores. How will they service the balance >> Rs1.5 Trillion (more than One and a half Lakhs of Crore Rupees) debt in future?

Annual Revenue is around Rs42,000 crore and Loss is around Rs30,000 Crores. Debt (after Govt taking equity) will be around Rs1,50,000 crores. Promoters selling stake (even to Govt) is a red flag. But no worries, there will be enough id*ots in the share market, who will go gaga after Govt buying the stake.

For 1 year (max 2 years), there may be no issues for VoId. But is that enough time to make a turn-around? Not likely, after seeing the confidence (or lack of it) of promoters, imho.
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Now giving the answers separately below:-
1. How will this impact the shareholding public?
But no worries, there will be enough id*ots in the share market, who will go gaga after Govt buying the stake.
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Today VoId hit 10% upper circuit, like I said above.

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2. can GoI buy share from market and raise the shareholding to 50.1% or 51% and take control and appoint chairman of the board?

It is legally possible, but NOT going to happen. Because even now, being the largest shareholder of VoId, Govt is allowing the promoters to continue to run the company. It shows they are NOT in mood to ru(i)n the company.


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3. Do Vi actually hold this many shares to transfer to government?
4. Why no share value re-evaluation is not required before this transfer - the share value may not cover the pending dues.

Yes, even after the current transfer, promoters will have 10.9% stake. They (Voda + Idea) originally had 75% stake.
So, they are giving away 26.39% Stake for the upcoming smallest of the tiniest problem? After this, the promoters will have just 10.93% stake of (current) value around just Rs5314 Crores.
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At max it may go up-to Rs15000 crores @ Rs15, which will still be nothing comparing their debt.
 
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kanagadeepan said:
I have answered almost all your questions in the first page.



Now giving the answers separately below:-
1. How will this impact the shareholding public?

Today VoId hit 10% upper circuit, like I said above.

--

2. can GoI buy share from market and raise the shareholding to 50.1% or 51% and take control and appoint chairman of the board?

It is legally possible, but NOT going to happen. Because even now, being the largest shareholder of VoId, Govt is allowing the promoters to continue to run the company. It shows they are NOT in mood to ru(i)n the company.


--

3. Do Vi actually hold this many shares to transfer to government?
4. Why no share value re-evaluation is not required before this transfer - the share value may not cover the pending dues.

Yes, even after the current transfer, promoters will have 10.9% stake. They (Voda + Idea) originally had 75% stake.

At max it may go up-to Rs15000 crores @ Rs15, which will still be nothing comparing their debt.
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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.
 
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.
 
kanagadeepan said:
Yes, even after the current transfer, promoters will have 10.9% stake.
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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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