Vodafone Idea shares decline by 65% from its 52-week high, 87 mutual funds hold stake

The shares of Vodafone Idea have slumped by around 65% from its 52-week high of Rs 19.15 on BSE.

The stock had fallen 3.4% on Thursday after the Supreme Court of India granted telecom companies the right to claim credit for duties paid on parts such as tower components and green shelters.

This decision overturns a previous judgment by the Bombay High Court, which had classified these items as non-capital goods, thereby denying the companies cenvat credit for the duties paid.


In 2014, the Bombay High Court ruled against telecom operators, stating that the items in question were not capital goods and did not qualify for Cenvat credit. The court held that these items performed independent functions and were not part of a unified capital asset. Additionally, towers affixed to the ground were classified as immovable property, making them ineligible for tax credits.

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Around 87 mutual funds had Vodafone Idea stock in their portfolios as on October 31, 2024. According to mutual funds, since some of these stocks are part of indices, index schemes, and ETFs will have exposure to them. Note, mutual funds report their portfolios for the previous month, the latest data available is for October 2024.

Nine arbitrage funds had an exposure of more than Rs 100 crore in Vodafone Idea in October. Kotak Equity Arbitrage Fund had the highest exposure of Rs 282 crore in October, followed by ICICI Prudential Equity-Arbitrage Fund which had an exposure of Rs 226 crore in the same period.


SBI Arbitrage Opportunities Fund had an exposure in Vodafone Idea of Rs 200 crore in the mentioned period. Invesco India Arbitrage Fund and Edelweiss Arbitrage Fund had a total exposure of Rs 120 crore and Rs 110 crore respectively.

HDFC Large and Mid Cap Fund and DSP Equity Savings Fund had an exposure of Rs 43 crore each in Vodafone Idea in October. Two schemes from HDFC Mutual Fund - HDFC Arbitrage-WP and HDFC Multi Cap Fund - had a stake of Rs 35 crore and Rs 31 crore respectively.

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SBI Balanced Advantage Fund had a total exposure of Rs 26 crore in October. Around 55 mutual funds had exposure of less than Rs 10 crore in October.

Mirae Asset Nifty Midcap 150 ETF and LIC MF Nifty Midcap 100 ETF had a total stake of Rs 5.21 crore and Rs 4.96 crore respectively. Two funds from HDFC Mutual Fund - HDFC NIFTY Midcap 150 Index Fund and HDFC Nifty LargeMidcap 250 Index Fund had an allocation of Rs 1.41 crore and Rs 1.32 crore respectively.

Mirae Asset Nifty LargeMidcap 250 Index Fund and Mirae Asset Nifty Total Market Index Fund had Vodafone Idea shares worth Rs 0.03 crore and Rs 0.02 crore respectively in their portfolios in October. Navi Nifty 500 Multicap 50:25:25 Index Fund had the lowest exposure of Rs 0.02 crore in October.

In 2024 so far, the shares of Vodafone Idea have gone down by nearly 60%. In the last one and two years, the shares have gone down by 50.26% and 19.74% respectively.