Vodafone Idea Limited’s (Vi) board has approved an amendment to its shareholders’ agreement to enable promoters, Aditya Birla Group (ABG) and Vodafone Group, to retain governance and management rights, despite a fall in their equity holdings.
The move follows the government’s recent conversion of statutory dues into equity, raising its stake in the telco to 48.99 per cent. This has led to a dilution of ABG’s and Vodafone Group’s stakes to 9.50 per cent and 16.07 per cent, respectively.
Under the existing agreement, the promoters must hold at least 13 per cent of the equity to exercise key governance rights. The board has now cleared a proposal to lower this threshold to 10 per cent, allowing the promoter group to retain rights such as appointing directors and key management personnel.
According to a regulatory filing, Vi will seek shareholder approval for the amendment at an extraordinary general meeting.
