Thread by @BeatTheStreet10

BIG UPDATE in TELECOM -

Vodafone Idea to be a Government-owned company now!

The Board approves conversion of AGR and spectrum liabilities into Equity! This will lead to a huge dilution for all shareholders!

Offers 35% stake to Govt at 10 Rs Valuation

The government will be 35.8% , Vodafone will hold 28.5% and Birla Group will hold 17.5% stake

Deal is subject to Govt Approval

Considering Equity Dilution and stake sale to Govt (means they don't have other investors to invest) : its negative for the company in longer term

While another problem is What If govt dont accept the conversion and equity stake

Equity dilution explained
If you hold 100 shares of Vodafone Idea, yoir 35 shares are taken by Govt without any pay to shareholders

While they still have to pay around 23000 cr bank liabilities d

Deal is positive for banks, since Cash will be used for paying only Bk Liabilities

Here are the banks to benefit most

In this video we explained around 11 months ago How Equity Dilution Will be negative for exisiting Shareholders

#VI
#vodafoneidea
#AGRDUES
#AGR

GOVT TO HOLD 35% STAKE IN VODAFONE IDEA : EXPLAINED



EQUITY DILLUTION EXPLAINED
WHAT IT MEANS FOR RETAIL SHAREHOLDER?
WHAT SHOULD EXISTING SHAREHOLDER SHOULD DO?

#VI
#VODAIDEA
#VODAFONEIDEA