Government to Retain 33% Stake in Vodafone Idea Despite Surging Stock Prices

26 Feb 2024 , 04:29 PM

The government intends to maintain its 33% stake in Vodafone Idea despite recent stock price surges, a Times of India report reveals. As of now, the government holds the largest stake in Vodafone Idea Limited, followed by the Aditya Birla Group and Vodafone Plc, UK.

Funds raised by Vodafone Idea are earmarked for launching 5G services and reducing debt, prompting the government to hold off on divesting its stake.

Sources suggest that any decision regarding divestment will be deferred until Vodafone Idea devises a credible revival plan.

Vodafone Idea, burdened by approximately ₹2.2 Lakh Crore in debt and significant losses, has witnessed a share price increase of over 150% in the past year.

The government acquired its stake at ₹10 per share, above the market price of ₹6.85, as per Companies Act regulations.

Vodafone Idea’s announcement to raise funds on February 22, 2024, is seen as a crucial step toward attracting significant investment amidst intense competition from Reliance Jio and Airtel.

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