Vodafone Idea spurts as govt to convert spectrum dues into equity at Rs 10/shr

Vodafone Idea (VIL) hit an upper limit of 10% at Rs 7.49 as the Government of India has decided to convert Rs 36,950 crore of the company's outstanding spectrum auction dues into equity at Rs 10 per share.

As part of the agreement, Vodafone Idea will issue 3,695 crore equity shares at a face value of Rs 10 per share, with pricing based on the volume-weighted average price of either the last 90 trading days or 10 days preceding the relevant date (February 26, 2025). The Rs 10 conversion price represents a 46.84% premium to VILs previous closing price of Rs 6.81. The issuance remains subject to SEBI approval.

Following this move, the governments stake in Vodafone Idea will rise from 22.6% to approximately 48.99%, though promoters will continue to retain operational control of the company.

The development aligns with the September 2021 Telecom Sector Reforms and Support Package, introduced to support struggling telecom operators. Vodafone Idea received formal communication from the Ministry of Communications on March 29, 2025.

Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. It is amongst Indias leading telecom service providers. The company provides pan India Voice and Data services across 2G and 4G platforms. The company holds a large spectrum portfolio including mid band 5G spectrum in 17 circles and mmWave 5G spectrum in 16 circles.

The company reported a consolidated net loss of Rs 6,609.3 crore in Q3 FY25 as against a net loss of Rs 6,985.9 crore in Q3 FY24. Revenue from operations rose by 4.16% year-on-year to Rs 11,117.3 crore in Q3 FY25.

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