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Vodafone Idea stock slips 19% in early trade, here's why

Vodafone Idea stock slips 19% in early trade, here's why

Vodafone Idea stock touched an intraday low of Rs 12.05, falling 18.86% on BSE. The large cap stock opened with a loss of 9.76% at Rs 13.40 on BSE.

Vodafone Idea share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. Vodafone Idea share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

Vodafone Idea share crashed 19% today amid reports that the government will become the single-largest shareholder of the company with a 35.8 per cent stake.This comes after the board of the telco approved conversion of the full amount of interest related to spectrum auction instalments and AGR dues into equity.

Vodafone Idea stock opened with a loss of 9.76% at Rs 13.40 against the previous close of Rs 14.85 on BSE.

The share touched an intraday low of Rs 12.05, falling 18.86% on BSE.

The telecom stock has lost 13.4% in the last three days. Vodafone Idea share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

Total 797.1 lakh shares of Vodafone Idea changed hands amounting to a turnover of Rs 102.32 crore on BSE.

Market cap of the telco fell to Rs 38,792 crore.

Vodafone Idea share has gained 14.88% in one year but lost 14.12% since the beginning of this year.

The promoter shareholders will hold 28.5 per cent (Vodafone Group) and around 17.8 per cent (Aditya Birla Group), respectively.

"The Net Present Value (NPV) of this interest is expected to be about Rs 16,000 crore as per the Company's best estimates, subject to confirmation by the DoT. Since the average price of the Company's shares at the relevant date of 14.08.2021 was below par value, the equity shares will be issued to the Government at par value of Rs 10/- per share, subject to final confirmation by the DoT. The conversion will therefore result in dilution to all the existing shareholders of the Company, including the Promoters," the company said.