Vodafone Idea allots shares worth ₹36,950 Crore to govt

9 Apr 2025 , 09:04 AM

Vodafone Idea Limited on Tuesday announced the allotment of equity shares worth ₹36,950 Crore to the Government of India, converting its spectrum dues into equity.

With this, the government has become the largest shareholder in the debt-laden telecom operator. The government now holds 48.99% stake. The allotment includes 3,695 equity shares of ₹10 each, at par.

This strategic move comes after the company’s earlier announcement on March 30, in line with the telecom relief measures outlined under the September 2021 Reforms and Support Package for the sector.

The company allotted the shares under Section 62(4) of the Companies Act, 2013, following directions from the Ministry of Communications. Vodafone Idea’s total paid-up share capital has increased to ₹1.08 Lakh Crore after the allotment. The issue comprised over 10,834 Crore shares.

The government has increased its stake via the Department of Investment and Public Asset Management (DIPAM). 

The government has previously stated that it does not intend to operate the company. With the equity conversion, the telecom operator gets much-needed financial relief. This will allow the company to focus on operations and compete more effectively in the Indian telecom sector.

The telco business announced a net loss of ₹6,609.30 Crore for the quarter ended December 2024 as compared to a loss of ₹7,175.90 Crore in the previous corresponding period.

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