Will Vodafone Idea funding hit Grasim’s valuation?

Mumbai: Morgan Stanley said if Grasim Industries contributes more capital to its group telecom venture — Vodafone Idea (VIL) — it could lead to the cement major’s holding company discount widening. Grasim owns 11.55% stake in Vodafone Idea and has sizeable holdings in most Aditya Birla Group companies.

Vodafone Idea on Friday approved raising up to 25,000 crore through equity and debt. The move is expected to reduce promoters’ stake in the telecom operator. Vodafone owns 53.57% and the Aditya Birla Group holds 18.48% stake in the company.