Vodafone Idea: Kumar Mangalam Birla Buys Rs 24.89 Crore Shares

It was created in August 2018 through the union of Idea Cellular and Vodafone India. Vi, which serves more than 300 million users, is presently India’s third-largest mobile network operator. The company provides both individual consumers and businesses with a wide range of services, including voice, data, and digital services. In the telecom sector, Vi has been at the forefront of innovation, always adapting to its clients’ changing needs. Vi is a major player in the Indian telecom industry and maintains a strong focus on customer satisfaction and technological advancement.

A share of VI was acquired by Kumar Mangalam Birla for Rs 24.89 crore:

Pilani Investment and Industries Corp. and Kumar Mangalam Birla have increased their ownership of Vodafone Idea Ltd. by acquiring shares from the open market valued at 0.02% of the company’s equity. In accordance with the June quarter filing, Pilani Investment and Industries Corp. held 10.90 crore shares, while Kumar Mangalam Birla owned 8.64 lakh shares. KM Birla purchased an extra 1.86 crore shares on September 6.

Creeping Acquisition by Kumar Mangalam Birla:

Another way to describe Kumar Mangalam Birla’s stake purchase is as a “creeping acquisition.” A creeping acquisition is typically defined as when an individual steadily grows their ownership of the business over time. The creeping acquisition limit was increased from 5% to 10% in the financial year 2021 by the Securities and Exchange Board of India (SEBI), the market regulator. This relaxation, however, only applied to the preferential allotment of equity shares; it did not cover transfers, block deals, or bulk deals.

In the event that the promoter group surpasses the 5% threshold for creeping acquisition within a fiscal year, takeover regulations will become relevant. Promoters of Vodafone Idea held 37.17% of the company as of July 19, whereas Pilani Investments had no previous holdings.

For VI stock is Goldman Sachs on SELL:

On September 6, Vodafone Idea’s stock saw a decline of more than 11% following the brokerage firm Goldman Sachs’ decision to maintain its “sell” rating on the telecom service provider and set a price target of Rs. 2.5 for the stock.

Vodafone Idea Ltd. stock shows some uptrend:

Vodafone Idea Ltd is trading at Rs. 13.60 per share, which is 0.38% in the intraday. Today’s high traded price is Rs. 13.77 per share, and hopefully the rally on the bull side will continue for the stock.

Conclusion: Kumar Mangalam Birla has increased his stake in VI and taken a greater risk by doing so. In the upcoming months, VI Networks and Explan will provide an indication of whether or not this stake is worthwhile.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.