Government’s Equity Conversion Boosts Vodafone Idea, But MOFSL Maintains ‘Sell’ View
Vodafone Idea equity conversion of upcoming spectrum dues into government equity marks a significant relief step under the 2021 telecom reform package. The government’s decision to convert ₹36,950 crore worth of dues into shares at ₹10 per share is seen as a materially positive development for the telecom operator. However, Motilal Oswal Financial Services (MOFSL) has retained its ‘Sell’ rating on the stock, citing long-term viability concerns and revising its target price to ₹6.50 per share.Government's Stake in VIL Set to Rise to 49%Following the proposed Vodafone Idea equity conversion, the government's stake in the company would surge from 22.6% to 49%, a move that dramatically shifts the ownership structure:Promoters' shareholding would fall from 38.7% to 25.5%.Public...