As an emerging trend, many investment stories happening in the pandemic period. Adding to the list, google directed its eye towards Vodafone Idea. Alphabet Inc is planning to buy 5% of the stake in Vodafone Idea.
Google’s Plan on Vodafone Idea
They say Google has a plan to buy a minority stake of around 5% on Vodafone, a telecom group based on British. They plan to invest in Vodafone Idea, in India, where the brand is struggling.
However, their plan in this investment seems to be a move against another giant Facebook who invested in Reliance Jio. Reliance Jio is the most important player in the industry, which is also the youngest.
But as per the latest information, both the companies refused to comment on this information.
Is it a rivalry action?
Google’s move is likely to be a rivalry action against Facebook and other investors, who poured their investments on Reliance Jio. Their investments are around $10 billion.
As per the financial time’s report, Alphabet Inc had also planned to buy Reliance Jio’s stake but unfortunately, its rival Facebook leads the race. Gaining stakes on Vodafone Idea eventually pit Google against Facebook. They also said that they expect the company to invest in some other stakes in India.
Adjusted Gross Revenue
There is a significance in the move, as in VIL, Vodafone only holds 45% of stake wherein unpaid statutory dues, nearly INR 58,000 crores in the hold.
After the supreme court’s order, which mandates the revenue from non-core business to be included while calculating the annual adjusted gross revenue (AGR) on the telecom industry. The major share comes from the exchequer fee for the spectrum and for the licence.
After these, the Vodafone Idea chairman, Kumar Mangalam Birla, said that there may be a situation to shut VIL if the government doesn’t provide any relief on the statutory dues.
To read recent news, please visit our News page.