New Delhi: Government stake in Vodafone Idea will more than double to 48.99 per cent as it is set to acquire shares worth Rs 36,950 crore in lieu of outstanding spectrum auction dues, the company said in a regulatory filing Sunday.
The government is already the single-largest shareholder in the debt-ridden Vodafone Idea with 22.6 per cent stake, and the fresh move will take its total holding more than the combined stake of the company’s promoter firms — Vodafone and Aditya Birla Group.
VIL promoters hold 14.76 per cent and 22.56 per cent stake in the company, respectively, at present.
“The Ministry of Communications… in line with the September 2021 Reforms and Support Package for Telecom Sector has decided to convert the outstanding spectrum auction dues, including deferred dues repayable after expiry of the moratorium period, into equity shares to be issued to the Government of India. The total amount to be converted into equity shares is Rs 36,950 crore,” the filing said.
Vodafone Idea (VIL) said it has been directed to issue 3,695 crore equity shares of the face value of Rs 10 each at an issue price of Rs 10 each within 30 days after issuance of necessary order from relevant authorities, including from Securities and Exchange Board of India (Sebi).
“Post the aforesaid issuance of equity shares, the Government of India shareholding in the Company will increase from existing 22.60 per cent to approximately 48.99 per cent. The promoters will continue to have operational control of the company,” the filing said.
The spectrum and adjusted gross revenue (AGR) instalment due for FY26, including the 2015 spectrum auction shortfall, aggregated to Rs 32,723.5 crore.
The move follows a series of reliefs from the government to help the company remain afloat in the market to maintain competition.
As of December 2024, the outstanding debt from banks (including interest accrued but not due) of the group is Rs 2,345.1 crore and deferred payment obligation towards spectrum payable over the years till FY44 and AGR (including interest accrued but not due) payable over the years till FY31 aggregates to over Rs 2.27 lakh crore.
In February 2023, the government approved the conversion of over Rs 16,133 crore interest dues of Vodafone Idea into equity after firm commitment from Aditya Birla Group to run the company and bring necessary investments.
Thereafter, the government decided to waive off bank guarantees that were required to be submitted for spectrum auctions held prior to September 2021.
The move provided relief to VIL from submitting bank guarantees aggregating to about Rs 24,800 crore against spectrum instalment dues.
The company has been struggling to even deposit a bank guarantee of Rs 6,090.7 crore, or Rs 5,493.2 crore, in cash for a shortfall of aggregate payment made for spectrum the company acquired in 2015.
PTI
