Will Vodafone Idea Ceding Share To Government Benefit Airtel, Reliance Jio? Motilal Oswal's Take
Telecom - Vodafone Idea Ceding Share To The Government; Airtel, Reliance Jio To Benefit? Motilal Oswal's Take
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
The last few days have seen heightened investor interest in Vodafone Idea Ltd.’s equity conversion of the regulatory obligation for the next four years. How will this change the sector dynamics?
Vodafone Idea has agreed to convert the adjusted gross revenue and spectrum differed interest into equity as a part of government aid to the sector. The government had offered the option to convert the interest component accrued during the moratorium period into equity – the Net Present Value, as per Vodafone Idea, is expected to be ~Rs 160 billion. This implies that the government’s stake in Vodafone Idea would be closer to 35%. It is important to highlight that Bharti Airtel Ltd. did not opt for a similar arrangement a couple of days ago.
So what will be the future repercussions?
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.