Market Moves: Nokia’s Rs 786 Crore Vodafone Idea Stake Sale Sparks Investor Frenzy

In a major market action, Nokia Solutions and Networks India has sold a 0.95% holding in Vodafone Idea, raising Rs 786 crore by way of an open market sale. The sale, which took place on Friday, involved selling 102.7 crore shares at an average price of Rs 7.65 per share. This is being done even as Vodafone Idea is working towards keeping its debt under control and shoring up its balance sheet.

 

Global investment company Goldman Sachs came out as one of the top buyers in the transaction, taking 59.86 crore shares, or 0.55% stake, for Rs 457.96 crore at the same price. Other buyers' details were not available immediately. The block deal comes after Vodafone Idea's previous action to issue shares worth Rs 2,458 crore to vendors Nokia and Ericsson last year, as part of a plan to settle partial dues and convert vendor liabilities into equity.

 

After the sale, Vodafone Idea shares declined almost 6% to close at Rs 7.46 on the NSE. The government's recent conversion of spectrum dues into equity has also raised its holding in the telecom operator to almost 49%. The deal highlights continuing changes in Vodafone Idea's ownership pattern as it undergoes financial restructuring and network expansion.

 

Source: The Economic Times