Govt Takes Stake in VI: Big news has come out about the Vodafone Idea. Vodafone Idea informed the exchange on Sunday that the government will convert the outstanding amount of the company into equity. After this change, the Govt Takes Stake in VI will become 49 %.
At present, the government holds a 22.60 % stake. Let us tell you that even after this change, the company’s control will remain with the promoters. The government is going to get shares worth Rs 36950 crore of the company. This is the spectrum auction of the company. Which is now being converted into shares.
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Govt Takes Stake in VI: The Ministry Also Approved
Vodafone Idea has said in a statement that the Ministry of Communications had given its order on March 29 itself. The company received this order on March 30. Let us tell you, this process is being done through the Telecom Reform Package of September 2021.
Govt Takes Stake in VI: How will the Price of Shares be Decided?
This process will take about 1 month to complete. According to the information received, Vodafone Idea will now issue shares worth Rs 3695 crore within the next 30 days. The face value of these shares will be Rs 10. At the same time, the price of the shares will be decided based on the average price of the last 90 days or the first 10 days of 26 February 2025.
Vodafone-Idea had sought help from the government on 22 March Vodafone-Idea, which is facing financial difficulties, is facing a lot of difficulties in paying Adjusted Gross Revenue (AGR) and spectrum dues. Due to this, on March 22, the company requested the government for additional financial support.
According to media reports, the company sent a letter to Telecom Secretary Neeraj Mittal on March 11 regarding this. The company had requested the government to convert a large part of its outstanding dues into equity.
VI Sought Help Under the 2021 Telecom Relief Package
According to the report, Vodafone-Idea was seeking relief for AGR and spectrum dues of Rs 36,950 crore. This also included immediate payment of Rs 13,089 crore in the coming weeks. The company had said that it could not meet these payments. Vodafone Idea had sought assistance under the 2021 Telecom Relief Package.
Vodafone Idea filed a curative petition in the Supreme Court in July 2024 last year challenging the calculation of AGR dues. In which non-core revenue was also included, and the company was against it. However, in September 2024, the Supreme Court rejected the petition of the telecom operator.
#JustIN | #VodafoneIdea says, Govt to convert dues into equity, to get shares worth Rs 36,950 cr at an issue price of Rs 10/sh
— CNBC-TV18 (@CNBCTV18Live) March 30, 2025
–Govt’s holding to increase to 49% from 22.6%
–Promoters will continue to have operation control of the company pic.twitter.com/CKEcV4xCmH
Share Performance
On Friday, the price of the company’s shares fell by 1.73 % to Rs 6.81 on the BSE. The stock has fallen by 10 % in the last week. At the same time, investors who have held the company’s shares for a year have suffered a loss of 48 % so far. Due to the Eid holiday, when the market opens on Tuesday, the company’s shares will have to be kept under observation.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗