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The Ministry of Communications on March 29 directed Vodafone Idea to issue equity shares worth ₹36,950 crore to the government under Section 62(4) of the Companies Act.
The government’s holding in Vodafone Idea will rise from 22.60% to nearly 48.99%. (Reuters File Image)
The Indian government’s stake in Vodafone Idea Limited (Vi) is expected to increase to approximately 48.99% following the conversion of outstanding spectrum auction dues into equity shares, as disclosed by the company on Sunday.
The Ministry of Communications on March 29 directed Vodafone Idea to issue equity shares worth ₹36,950 crore to the government under Section 62(4) of the Companies Act. The move aligns with the telecom sector relief package announced in September 2021.
Vodafone received the communication today and is required to complete the issuance within 30 days, subject to approvals from relevant authorities, including the Securities and Exchange Board of India (SEBI).
The allocation will involve issuing 3,695 crore equity shares with a face value of Rs 10 each at an issue price of Rs 10 per share. The pricing has been determined based on the higher of the volume-weighted price over the last 90 trading days or the last 10 trading days before February 26, 2025, in accordance with Section 53 of the Companies Act, which prohibits issuing shares below their par value.
The government’s holding in Vodafone Idea will rise from 22.60% to nearly 48.99% after this transaction. However, the company assured that the promoters will continue to retain operational control.
Vodafone Idea stated that it will take all necessary steps to execute the share issuance upon receiving the requisite approvals.
