The cat is out of the bag!! Now, Mr. Kumar Managalam Birla, Chairman of Aditya Birla Group doesn’t want to fund any longer the sinking ship!! He is happy to offer his entire stake of around 27% in Vodafone Idea to the government or any other entity chosen by the centre.
For investors who had been invested when the stock had fallen to low single digits with the hope that it will have a phoenix moment – the hope seems to be dashing for now!!
However, for other investors who bought VIL at higher levels with fear of missing out (FOMO), since the market had gone abuzz with the narrative of “This stock will touch 3-digits in 3 years” now would be cursing themselves. The stock price has been falling post Mr. Birla’s announcement that he is not in a mood to infuse more money in the beleaguered telecom.
Will some white knight come to save it? At least no one has come until now!! Let’s wait and watch. However, you as an investor or a banker could have saved yourself from all this agony had you conducted simple “What if’ questions yourself. It would have enabled you to take better view with respect to investing in the stock or funding the company. Had put my thoughts before, hence revisiting it now. To read more just click Vodafone Idea – “What if” Revisited
Disclaimer: Please note that these are my personal views. While I am NOT a registered Research Analyst as per SEBI (Research Analyst) Regulations, 2014. All investors are advised to conduct their own independent research into individual stocks or industries before making any decision. In addition, investors are advised that past stock performance is not indicative of future price action.