Vodafone Idea: Reports of stake sale to LIC baseless

BENGALURU: Vodafone Idea on Monday described the talks about life insurance coverage main LIC choosing up a stake as “baseless hypothesis”. Market gamers and sources inside the insurance coverage big, nevertheless, mentioned there have been preliminary talks between the 2, and that the government-run life insurer could have a look at the troubled telecom service supplier to purchase a big minority stake.
According to market sources, if a deal is finalised, the life insurance coverage main is predicted to choose up the stake by the preferential allotment route. They mentioned that in case the LIC-Vodafone Idea deal is sealed, it could assist revive investor confidence within the telco. This might convey in additional gamers to spend money on the beleaguered telecom big, prefer it occurred within the case of Yes Bank the place banking big SBI led a rescue plan.
At Monday’s closing value, Vodafone Idea had a market capitalisation of Rs 26,120 crore on the BSE. “We can not touch upon such baseless hypothesis,” a Vodafone-Idea spokesperson mentioned in response to a questionnaire.
In the June quarter, Vodafone Idea noticed its internet losses widening to Rs 25,460 crore after it made further provisioning to pay AGR-related dues.

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