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- Government to Convert Vodafone Idea’s Rs 36,950 Crore Dues Into Equity, Stake to Rise to 49%
Mumbai2 minutes ago
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Vodafone Idea (VI) has announced that the government will convert the owners of Rs 36,950 crore to the company’s spectrum auction into equity shares. That is, the government will achieve the share of value as dues on the company. After this conversion, the government’s stake in the telecom company will increase from 22.6% to about 49%. However, the promoter will maintain the operational control of the company.
Vodafone Idea said in a press statement that the Ministry of Communication issued an order on 29 March 2025, which approved conversion due to the September 2021 telecom reform package. The company received this order on 30 March.
The company will issue 3,695 crore equity shares within 30 days
Under this process, Vodafone Idea will issue 3,695 crore equity shares at a face value of Rs 10 per share within 30 days of approval from Idea Security and Exchange Board of India (SEBI) and Relevant Authorities. The company said that after receiving the necessary approval, it will take all necessary action to complete the work of issuing equity.
Vodafone Idea shares fell 51% in a year
On Friday, Vodafone Idea shares closed at Rs 6.80 with a decline of 1.73%. In the last one month, the company’s stock has dropped about 10%, 35% in six months and 51% in a year. The company’s market cap is 48.55 thousand crore rupees.
On March 22, Vodafone-Idea sought help from the government
Vodafone-Idea, which is struggling with financial problems, is facing a lot of difficulties in repaying the adjustable 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. The company had requested the government to convert a large part of its outstanding dew ie arrears into equity.
The company sought assistance under the 2021 telecom relief package
According to the report, there was a demand for relief for AGR and spectrum dues worth Rs 36,950 crore. It also included immediate payment of Rs 13,089 crore in the coming weeks.
The company had said that it does not have the ability to meet these payments. Vodafone Idea sought assistance under the 2021 telecom relief package.
The company’s petition was dismissed by the Supreme Court in September 2024
Vodafone Idea had challenged the calculation of the AGR dues in July 2024 last year by filed a curative petition in the Supreme Court. In which non-core revenue was also included and the company was against it. However, in September 2024, the Supreme Court dismissed the petition of the telecom operator.
Vodafone-Idea loses ₹ 6,609 crore in the third quarter
Vodafone-Idea has incurred a loss of Rs 6,609 crore in the third quarter of FY 2024-25. The company suffered a loss of Rs 6,986 crore in the same quarter of a year ago. The company’s deficit has come down by 5.40% on an annual basis.
Vodafone-Idea’s consolidated operational revenue rose by Rs 4.16 crore to Rs 11,117 crore in the October-December quarter. The company’s revenue was Rs 10,673 crore in the same quarter of a year ago i.e. Q3Fy24. The amount received from selling goods and services is called revenue or revenue.
Vodafone-Idea’s ARPU stood at Rs 173
Vodafone-Idea’s ‘user on average revenue’ (ARPU) rose 4.7% to Rs 173 during the October-December quarter. It was Rs 166 in the previous quarter i.e. July-September. This change has occurred due to tariff hike and purchasing expensive packs by users.
