Vodafone idea (vi) is the third largest mobile telecommunication network of india.Vi has 245.62 million subscribers as of October 31, 2022, making it the world's 11th biggest mobile telecommunications network.
As of report the owners of vodafone idea group ready to invest in the company,after this news government of india releif from AGR dues payment.Today's Vodafone Idea share price opened higher and went to an intraday high of 8.60, marking a 25% gain.
The more than 16-month dispute between the government and the founders of Vodafone-Idea (Vi) before the latter decided to convert a portion of its debt into equity last week has affected the company.
On friday,Vodafone Idea informed Indian stock exchanges on Friday about the reduction in AGR dues payments, saying, to convert the NPV of the interest connected to delayed of spectrum action instalments and AGR Dues into equity shares to be distributed to the Government of India.
Over all, Rs. 16133,18,48,990 would be converted into equity shares. The Company has been ordered to issue 1613,31,84,899 equity shares, each with a face value of Rs.10 and an issue price of Rs.10.When the debt is turned into equity, the government will become the company's largest stakeholder.
Avinash Gorakshkar, Head of Research at Profitmart Securities, commented on the Vodafone Idea share price surge, saying, "Conversion of AGR dues into equity will lead to an increase in the company's equity share capital, lowering its EPS" (Earning Per share).
As a result, the current surge is simply speculative and short-term, as the decision will have no impact on the company's fundamentals. Vodafone Idea has been a loss-making firm for a long time, so buying the stock mainly because it has risen sharply today is not a good idea.
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FAQs
is vodafone idea investment a good decision.?
vodafone idea is not a good investment decision because vi is a loss making company and the telecommunucation industry is highly competative.
which is the largest active user base telecom company in india.?
The largest active user base telecom company in india is reliance jio which has 42.138 crore active users.second is airtel which las 22.285 crore active users.third is vodafone idea which has 12.336 crore active users.
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