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Last Updated : Aug 12, 2019 03:55 PM IST | Source: Moneycontrol.com

Aditya Birla Group raising stake in Vodafone Idea via open market: Report

The falling stock price has provided an opportunity for Aditya Birla Group to raise its holding in the telecom company, which is currently at 28.5 percent.

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The Aditya Birla Group is in the process of raising its stake in Vodafone Idea from the open market and regulatory filings showed that it acquired 0.4 percent in the past two months, according to a report in Business Standard.

The falling stock price has provided an opportunity for Aditya Birla Group to raise its holding in the telecom company, which is currently at 28.5 percent.

Vodafone Idea's stock price, currently at just over Rs 5, has fallen over 80 percent in the past year.

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Moneycontrol could not independently verify the report.

"We have raised our holdings because the prices are attractive and in our assessment, the market is not reflecting the true value of the underlying business," a Birla spokesperson told the paper.

According to an agreement signed between Aditya Birla Group and Vodafone in 2017, the former was to acquire an additional stake of 9.5 percent at Rs 130 per share in the merged entity.

The two promoters, Vodafone Plc and Aditya Birla Group, together own 71.57 percent of the company as of the end of the June 2019. Vodafone Plc's shareholding is over 43 percent.

The 2017 agreement had restricted the promoters from buying or selling shares to a third party without prior approval from the other promoter, the report said.

If the promoter's holdings are not equal by the end of the fifth year after the merger, then Vodafone will have to sell its shares.

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First Published on Aug 12, 2019 03:54 pm
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