Step 1: Write the formula for moment of inertia of a solid sphere.
The moment of inertia of a solid sphere about its diameter is
\[
I=\frac{2}{5}MR^2
\]
where \(M\) is the mass of the sphere and \(R\) is its radius.
Step 2: Find how the mass changes when radius becomes \(\dfrac{R}{2}\).
Mass of a sphere is proportional to its volume.
Since volume of a sphere is
\[
V=\frac{4}{3}\pi R^3,
\]
mass is proportional to
\[
R^3
\]
If the new radius becomes
\[
R'=\frac{R}{2},
\]
then the new mass becomes
\[
M'=M\left(\frac{R'}{R}\right)^3
\]
\[
=M\left(\frac{1}{2}\right)^3
\]
\[
=\frac{M}{8}
\]
Step 3: Find the new moment of inertia.
New moment of inertia is
\[
I'=\frac{2}{5}M'R'^2
\]
Substitute
\[
M'=\frac{M}{8}
\]
and
\[
R'=\frac{R}{2}
\]
\[
I'
=
\frac{2}{5}\left(\frac{M}{8}\right)\left(\frac{R}{2}\right)^2
\]
\[
=
\frac{2}{5}\cdot \frac{M}{8}\cdot \frac{R^2}{4}
\]
\[
=
\frac{2MR^2}{160}
\]
\[
=
\frac{1}{32}\left(\frac{2}{5}MR^2\right)
\]
Since
\[
I=\frac{2}{5}MR^2,
\]
we get
\[
I'=\frac{I}{32}
\]
Step 4: Final conclusion.
Hence, the moment of inertia becomes
\[
\boxed{\frac{1}{32}}
\]
of its initial value.