Vodafone Idea Limited (Vi) has announced that the government of India will convert its outstanding spectrum auction dues of Rs 369.5 billion into equity shares, thereby increasing its ownership in the telecom company from 22.6 per cent to nearly 49 per cent. Despite the rise in the government’s stake, the promoters will retain control over the company’s operations.
In an official statement, Vi confirmed that the Ministry of Communications issued the approval order on March 29, 2025, under the provisions of the Telecom Reforms Package introduced in September 2021. The company received the order on March 30, 2025.
As part of the conversion process, Vi will allot 36.95 billion equity shares at a face value of Rs 10 each. This issuance will take place within 30 days of obtaining necessary approvals from regulatory bodies, including the Securities and Exchange Board of India (SEBI). The pricing for the share issuance was calculated based on the volume-weighted average price over either the past 90 trading days or the 10 trading days preceding the relevant date, February 26, 2025, in accordance with the Companies Act, 2013.
Following the equity conversion, the government’s holding in Vi a will rise to about 49 per cent, while the existing promoters will continue to manage the company. The telecom operator said it is committed to completing the equity issuance process once it secures all required clearances.
