Vodafone Idea (Vi) investors would be slightly relieved as the telco’s stock has recovered by almost 7% on Wednesday after dipping 20% on Tuesday. The third-largest telco had decided to give its equity to the government, due to which the investor confidence in the company must have fallen a little. But with the government saying that it isn’t much interested in the business of Vodafone Idea, the stock seems to have recovered quite significantly. At the time of writing, Vodafone Idea stock (listed as IDEA) is trading at Rs 12.60, which is 6.78% in the green as compared to Tuesday’s closing at Rs 11.80.
Vodafone Idea Stock Recovering, But Tata Teleservices Now Trading at Lower Circuit
Following the announcement from Vodafone Idea, Tata Teleservices (TTML) also said that it will be giving the government equity against the dues it has. At the time of writing, TTML is trading at Rs 275.65, which is 5% in the red as compared to the previous close of Rs 290.15.
The stock of TTML has soared positive hundreds of percent in the last year. The announcement from TTML came after the stock market closed on Tuesday; thus, the negative effect of the news was expected on Wednesday morning.
Both Vodafone Idea and TTML will now also be owned by the Indian government. Vodafone Idea will have to give up an equity stake of 35.8%, while TTML will have to give up an equity stake of 9.5% to the Indian government.
Bharti Airtel had earlier announced that it will be paying all the interest dues and won’t give the equity to the government. The Indian government has said that the move of taking up equity in the companies is not to get a controlling share but to ease their cash flow situation. The telecom sector is already stressed enough, and the steps from the government are to help the sector.
