American investment banking giant Goldman Sachs bought nearly 60 crore shares of Vodafone Idea (Vi) through a block deal on Friday, according to NSE bulk deal data. The block deal was worth Rs 457.9 crore.
With this transaction, Goldman Sachs (Singapore) has acquired about 0.55% stake in the company, which is led by the Birla group, although the Indian government is now the largest shareholder.
Goldman Sachs picked up the shares sold by Nokia Solutions and Networks India Private Limited, which exited the telecom company. Nokia sold its 0.95% stake in Vi, raising around Rs 785.67 crore.
How Nokia Got Stakes in Vi
Last year, Vodafone Idea (Vi) issued 102.7 crore equity shares to Nokia at Rs 14.80 per share through a preferential allotment, helping the telecom operator settle dues of around Rs 1,520 crore.
Following this, Nokia’s India unit acquired a 1.47% stake in Vi, which was later diluted to about 0.95% after the government recently increased its own shareholding.
Earlier this month, the government converted Rs 36,950 crore worth of Vi’s outstanding spectrum dues into equity, raising its stake from 22.6% to nearly 49%.
This move is expected to ease Vi’s statutory liabilities and provide over Rs 40,000 crore in cash flow relief over the next three years, further stabilizing the company’s financial position.
Vi's Share Price Movements
Vi's share price fell by 0.54% today, during the first trading session after the shareholding change.
Over the past month, the telecom firm’s shares have risen by 9.41%, as government measures have eased financial pressures. However, year-to-date, the stock remains down by over 7%.
Last week, Communications Minister Jyotiraditya Scindia cautioned Vodafone Idea (Vi) that the government would no longer help clear its AGR and spectrum dues following the recent equity conversion, warning that the company could otherwise "become a PSU."
"The relief proposal of equity was utilised, and I have converted till 49 percent; otherwise, you become a PSU. What is due to the government is due to the government — it is incumbent upon the players to pay that to the government," Scindia said.
