The sharp decline of Vodafone Idea Ltd.'s share price on the bourses on Thursday drew attention towards the exposure of mutual funds to the stressed telecom firm.
The stock plunged 19% after the Supreme Court rejected the company's plea seeking re-computation of adjusted gross revenue by the Department of Telecommunications.
VIL's AGR liability stood at Rs 70,300 crore as of June, which makes up 33% of its gross debt. Re-computation of the dues would have cut down the AGR by around Rs 30,000–35,000 crore.
As per the data available with the exchanges for the quarter ended July 19, 35 mutual funds cumulatively held a 6.12% stake or 426.9 crore shares in VIL.
Here are some of the mutual funds that have significant exposure to VIL's stock:
Kotak Mahindra Asset Management Co. held 47.4 crore shares, amounting to a 0.7% stake in the company, till Aug. 31, according to Bloomberg data.
ICICI Prudential Asset Management Co. held 46.1 crore shares or a 0.68% stake, in the firm till August.
Nippon Life India Asset Management Ltd. and SBI Funds Management Ltd. held around 38 crore shares or a 0.56% stake, till the end of the last month.
HDFC Asset Management Co. held 35.2 crore shares or 0.52% stake, Aditya Birla Sun Life Asset Management Co. owned 31.2 crore shares or 0.46% stake, and Invesco Asset Managers India Pvt. held 23.6 crore or 0.35% stake as of Aug. 31.
Among other funds, Edelweiss Asset Management Ltd. held 0.26% shares, followed by Tata Asset Management Ltd. with a 0.25% stake, Axis Asset Management Ltd. owning a 0.21% stake, and 360 One Asset Management Ltd. holding a 0.15% stake.
Shares of VIL closed 19.53% lower at Rs 10.38 apiece on the NSE, compared to a 0.15% rise in the benchmark Nifty. The stock is down 35.3% on a year-to-date basis.
Four out of the 22 analysts tracking the company have a 'buy' rating on the stock, five suggest 'hold' and 13 recommend 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 4.8%.
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