Question: What Went Wrong With Vodafone Idea Merger?

Is Vodafone idea a good buy?

Vodafone Idea advanced nearly 35 per cent intraday on Friday after the news reports.

However, it pared gains to end nearly 13 per cent higher after the clarification on the media reports.

“In the telecom space, investors should go with the stronger player which is Bharti Airtel..

Will Vodafone shut down in India?

But its closure would likely have an adverse impact on the telecoms sector as a whole. If Vodafone Idea does decide to exit the Indian market, the industry will effectively be turned into a duopoly, with the only players being India’s Reliance Jio Infocomm and Bharti Airtel.

Who will take over Vodafone idea?

However, the merged entity continues using both the Idea and Vodafone brand. Currently, the Vodafone Group holds a 45.1% stake in the combined entity, the Aditya Birla Group holds 26% and the remaining shares will be held by the public….Vodafone Idea.TypePublicTotal equity₹596,348 million (US$8.4 billion) (2019)18 more rows

Why did Vodafone merge with Idea?

Vodafone Idea has a broadband network of 340,000 sites, distribution reach of 1.7 million retail outlets. On 31 August 2018, Vodafone India merged with Idea Cellular, and was renamed as Vodafone Idea Limited. … After a plunge in share price of Vodafone Idea by 80% on NSE, Balesh Sharma resigned citing personal reasons.

Is Vodafone company is closing?

Is Vodafone or Idea closing down? No. Vodafone and Idea are joining forces to become Vodafone Idea Limited- India’s Largest Telecom Company! If you’re a Vodafone or an Idea customer, we remain committed to providing you with the best experience every day, and your services will continue as normal.

What happens if Vodafone bill is not paid?

If you won’t pay your Vodafone Postpaid Bill of the SIM, for the 1–2 months the company will only charge you some amount for but will also tell you that they are about to disconnect the connection. … So, it’s better to pay your bills in order to get notice or Blacklisted from the SIM operator of your device.

Why is Vodafone making losses?

Telecom firm Vodafone Idea on Thursday reported a record loss of Rs 50,921 crore for the September quarter, as it made a provision for the Supreme Court’s ruling on payment of average gross revenue (AGR) dues, even as ongoing brutal pricing war continued to hurt.

Can Vodafone take you to court?

if you are using postpaid connection of any operator.. u are legally bound to pay the amount of your phone bill.. if you hadn’t pay the said amount …then the company can sue on you…and cancel your connection…….. and if you are not paying ur amount from 2 or 3 months then the company will file a case on you….

What went wrong with Vodafone idea?

Sinking of a two-decade-old telecom operator because of a tariff war and expensive spectrum won’t be encouraging for foreign investors. In the best-case scenario, Vodafone-Idea will operate as a regional carrier. On the contrary, public-sector units like BSNL and MTNL will get a Rs 74,000 crore bailout.

Can Vodafone idea shut down?

Cash-strapped Vodafone Idea, which faces balance AGR dues of Rs 53,500 crore more as per DoT’s estimates, has said it will shut down its operations if its bank guarantees are invoked or if it doesn’t get relief on its AGR dues.

What is the future of IDEA Vodafone?

Vodafone Idea holds a 11.15% stake in Indus Towers and is looking to raise Rs 4,000-4,500 crore by selling its stake in the merged Indus Towers-Bharti Infratel entity. (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

Is Vodafone in financial trouble?

Investment bank thinks Vodafone could be in trouble. RBC Capital Markets has released an investor note warning Vodafone might be in a spot of bother following years of restructuring, M&A, as well as the risk associated with up-coming spectrum auctions.

Is it good time to buy Vodafone Idea shares?

Vodafone Idea share price today rallied 20 per cent to Rs 12.62 apiece on BSE, nearing its 52-week high of Rs 13.55. … “Vodafone Idea has gained over 100% in the last 10 trading sessions and it is a good time to book profits in this stock now,” Amit Gupta, Cofounder Tradingbells, told Financial Express Online.

What will happen if Vodafone shuts down?

If Vodafone Idea chooses to go the bankruptcy path and shuts down operations, the impact on Indian economy will be multifold. The magnitude of debt default, job losses and customer woes will have huge repercussions in the banking and telecom sectors.