Vodafone idea says on Friday that there is no proposal that is consider by its board as Google eyeing to buy a 5% stake in its operations. The second largest telecom operator in India responds to the clarification of BSE on Friday over the reports of Google eyeing a stake in Vodafone. The shares of Vodafone Idea is on 35% before the closing the stack at 12% above its closing price on Thursday. The British telecom giant Vodafone holds about 45% stake in Vodafone Idea with its Indian venture staring at unpaid dues of over Rs 55,000. Vodafone Idea Responds to the rumors that is spreading across the Indian market.
Facebook is acquiring a whopping 9.99% stake in Reliance Jio, Google’s stake in Vodafone can pit these two telecom giants on a collision course in the tight Indian telecom market. Vodafone Idea’s share prices were trading at the day’s high of Rs 7.85 around 10 am on Friday before closing the day at Rs 6.56. The price went down to 6.40 from 7.40 around the time the company made clarifications of the story.
In its fourth-quarter and FY20 earnings call in the second week of May, Nicholas Read, CEO of Vodafone Group said that Vodafone will not inject new equity into its Indian venture. It also says that the Indian venture which was already under a critical situation due to the COVID-19.
“The business requires a government support package if India wants to maintain a ‘3 plus 1 player’ telecoms market,” Read said in the earnings call.