Vodafone Idea shares will be in focus on Monday after the company said its promoters have set aside equity shares worth ₹3,529 crore to clear old dues linked to the merger of Vodafone India and Idea Cellular. The move is part of an amended agreement under which the Vodafone promoter group will pay a portion of the amount in cash and secure the remaining dues through equity shares. The shares closed on Rs.11.84 with a 2 percent rise on last trading session. The stock recently climbed the 52-week high of Rs.12.11 rising 56.11 per cent over the past six months.
This comes after Vi, on Wednesday, amended an agreement with its Vodafone promoter group to secure the recovery of nearly ₹5,836 crore linked to liabilities arising from the 2017 Vodafone-Idea merger. The revised recovery structure included ₹2,307 crore in cash, which will be paid by Vodafone promoters over the next 12 months.
The remaining amount will be secured through 3.28 billion equity shares held by three Vodafone group promoter entities-Euro Pacific Securities Ltd (EPSL), Omega Telecom Holdings Pvt Ltd and Usha Martin Telematics Ltd (UMTL), the company said on Friday. The earmarked shares represent 3.03% of Vodafone Idea's total equity capital and will be sold over a period of five years, with the net proceeds accruing directly to Vodafone Idea, it said in a stock exchange filing.
The promoters will continue to remain the legal and beneficial owners of the shares. However, they will not be permitted to sell, transfer, dispose of or create any lien on these shares, except as provided under the amended agreement. Of the total earmarked shares, EPSL has set aside 2.89 billion shares, accounting for over half of its holding in Vi, while Omega has earmarked 256.8 million shares and UMTL 131.8 million shares, the disclosure showed..The government became the largest shareholder in Vodafone Idea in March this year after converting dues worth Rs 36,950 crore into equity, taking its stake to nearly 49 percent. Earlier, in 2023, the Centre had picked up a 33 percent stake in lieu of statutory dues exceeding Rs 16,000 crore.
Technically, a few analysts pointed out mixed signals. Support for the stock is seen near Rs 10–9.50, while resistance lies around Rs 12.50–14.Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted, "The stock has showcased strong volatility in the last session, plunging towards the 50-DEMA after an elongated period of bullish momentum. The support zone is visible around Rs 10–9.50, while Rs 12.50, followed by Rs 14, represents a sturdy hurdle zone." AR Ramachandran, part-time Sebi-registered research analyst at Tips2trades, said, "Vodafone Idea shares currently look bearish on daily charts with resistance at Rs 12.85. A daily close below Rs 10.7 could push the stock down towards Rs 8.76 in the near term." In contrast, Ravi Singh, Chief Research Officer at Mastertrust, stated that the stock "may rise and test Rs 13.50 in the near term."