Is it time to exit Vodafone-Idea?

Hearing Govt. is picking up a 35.8% stake in Vi against AGR+Spectrum dues...

So, we have a new BSNL-MTNL in the making ? 

There are two ways to look at vi 

Glass half full or glass half empty

Conversion of debt into equity may be good as they have their debt redcution

Conversion also means that there may be a selling pressure which may come and the equity becomes too large now

You can make good profit using Bank Nifty option on a daily basis with a small capital of rupees 5000 only.

Update

Vodafone Idea has opted to convert Rs 16,000 cr in outstanding interest payments to the Government into equity. The company will issue fresh shares at a price of Rs 10 each, that’s 30% lower than Monday’s closing price. This will make the Indian Government the largest shareholder in the company with ~36% stake.

Investors were clearly unhappy with the move and the stock crashed over 20%. Here’s why? Recent price hikes, the buzz of existing promoters injecting fresh capital, plus rumors of new investors onboarding sparked hopes of a turnaround. In that context, the latest move came as a huge shock for the markets. Additionally, fears of Vodafone Idea going down the BSNL/MTNL path with the Government in charge only made matters worse.

 But, let’s look at the bright side. Its +25 cr customers will continue to enjoy the same (or maybe worse) Vodafone Idea experience and +13,000 employees get to keep their jobs. Sometimes you just gotta do what you gotta do. 😌