Business
Thursday was a devastating day for telecom companies. Shares of Vodafone-Idea and Indus Tower fell sharply. Vodafone-Idea share fell by more than 19% to Rs 10.44.
On Thursday, September 19, the Supreme Court dismissed the curative petition filed by telecom companies on the AGR dues decision, after which a sharp decline was witnessed.
Vodafone hoped for a relief of ₹30-40 thousand crore, potentially boosting the stock by ₹5-6 per share. However, the stock has been falling since the August 30 hearing.
Goldman had advised selling the stock at ₹2.5. Currently, it's trading at ₹10. Experts say future stock movement will depend on the company's performance.
Market experts say that now the share of Vodafone has come down to the FPO rate. FPO investors have not lost yet. Those who have bought at Rs 15-17 can hold now.
Goldman Sachs says the money the company has raised recently is not enough to ease the pressure. Its dominance in the market may further reduce by 3-4% in 3-4 years.
Brokerage firm Goldman believes that the company's cash flow may also remain negative till FY2031.
Investment in the share market is subject to risks. Do consult your market expert before investing.