There is good news for Vodafone Idea shareholders. Vodafone Idea has been granted permission from Department of Telecommunications, Ministry of Communications. The only thing now remains in the path of Vodafone Idea fundraising plan is a cabinet approval for the same.
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The DoT has approved FDI worth Rs 18,000 crore in the company. It is also said that cabinet approval in this regard would also be granted in two to three weeks’ time. In Conversation with Zee Business Managing Editor Anil Singhvi, Varun Dubey, Senior Research Analyst, said ” We have to first of all understand the significance of this development. Vi has doled out a plan to raise Rs 25,000 crore last year, however, that fundraising could not be materialized due to several reasons. Since the DoT has already granted permission to Vodafone Idea for FDI and it is highly anticipated that cabinet will also give green signal, it will be a big step towards company’s ambitious fundraising plan.”
वोडाफोन-आइडिया के लिए बड़ी खबर
वोडाफोन-आइडिया में FDI को मंजूरी
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This will not only provide much-needed relief to the company in settling the AGR dues for many years, but will also go a long way in helping the company take part in 5G auctions, said Dubey. “Once Vodafone Idea get the cabinet approval, the shares may see a good rally,” he said.
When the Market Guru asked why a cabinet decision is required by Vodafone Idea, Dubey said the matter is related to FDI and there has been several changes in the laws related to it. ” Vodafone already holds about 45 per cent stake in the company and if another Rs 18,000 crore, likely to come via FDI, is added, it will increase the limit significantly and that may be a problem vis a vis FDI norms, “added Varun Dubey.
Vodafone Idea shares ended the day at Rs 9.20, up 0.20 paise or 2.22% percent on NSE on Thursday.