At ₹6.75, Vodafone Idea shares show the company is hanging by a thread
- Voda Idea’s Q1 earnings show that based on its current cash burn rate, its funds may suffice for only 4-5 quarters
- On a call with analysts, the company gave the impression that it would conserve cash rather than go ahead with all of the capex it had earlier guided for
Mumbai: Shares of Vodafone Idea Ltd slumped 27% on Monday and now trade at merely ₹6.75 apiece. When Vodafone India Ltd and Idea Cellular Ltd had announced their merger in March 2017, they had envisaged a far greater value for the stock. At that time, the merger pact included a clause that gave Idea Cellular’s promoter the right to purchase shares in the merged entity from Vodafone Group Plc at ₹130 per share.
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