WHY MR.K.M.BIRLA IS KEEPING THE VODAFONE IDEA SHARE PRICE SUPPRESSED EVEN BELOW RIGHT ISSUE PRICE OF RS.12.50 /- SHARE.I GOT THE ANSWER AT MONEYCONTROL.COM AS PER GOOD ANALYSIS DONE BY ONE OF THE SMALLRETAIL INVESTORS.HE WRITE UP IS BEING PRODUCED HERE.

 

EXTRACTS FROM MONEYCONTROL MEMBERS MESSAGE BOARD (AS IT IS).

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By Tradeanalyze

 

Let me share my view about what KMB might be planning to make his shareholding equal to Vodafone in VI. Vodafone's total holding in VI is around 1236 crore shares. KMBs total holding in VI is 835 crore shares. 

The difference between the promoters is 401 crore shares. If KMB want to equalize his holdings with Vodafone in VI then he should allot another 401 crore VI shares to him. That might be the plan from promoters. That is why Vodafone already announced that they will not take part in the coming fund infusion. So that KMB only can participate and allot 401 crore shares in the form of preferential allotment. In that scenario the total promoters shareholding will reach 75% in VI overall. 

Both promoters will have equal holdings. So KMB wont need to buy from Vodafone with higher price to equalize his holdings. This is all preplanned that is why they have set the right issue share price at very deep discount. This is the main reason why promoters are holding the share price at dirty cheap rate for a long time. Investors should understand this clearly. So in my opinion KMB can maximum allot 401 crore shares only. Vodafone wont allow anything more than that. 

The question here is what might be the preferential rate that KMB might infuse his fund for this 401 crore shares. In my opinion Vodafone wont allow him to infuse the rate lower than Rs 17.5. So he might infuse the fund for Rs 17.5 to Rs 20 per share. Promoters will release their pressing only after the fund infusion and equalize their holdings. One might think why cant KMB buy the shares from open market to equalize his holdings with Vodafone. If he does that then the promoters holding will reach 86% which will violate the SEBI rule that promoters should hold 75% only. 

This will be the game plan from KMB. I hope this will end hopefully before March 2021. After that VI will reach its original valuation quickly. This is purely my analysis based on my own research. 

Happy days will come soon. Stay invested and be calm form couple of years to ripe the bigger benefits