Vodafone Idea has received from the Government of India what is largely being viewed in the industry as the second lifeline. The Indian Government has announced its intent to convert an additional Rs 36,950 crore worth of the struggling telco’s dues into equity, more than doubling its shareholding to as much as nearly 49%.
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The company has received a similar aid previously as well in the year 2021 wherein the Indian Government had approved the conversion of Rs 16,133 crore of Vodafone Idea’s interest dues into equity. The company, in a regulatory filing under Regulation 30 of the SEBI Listing Regulations, disclosed that it received an order on 30 March 2025, confirming the government’s decision. The total amount to be converted stands at Rs 36,950 crore, with the issuance of 3,695 crore equity shares of face value Rs. 10 each at an issue price of Rs. 10 per share.
“It is hereby informed that Ministry of Communications, Government of India has, in line with the September 2021 Reforms and Support Package for Telecom Sector has decided to convert the outstanding spectrum auction dues, including deferred dues repayable after expiry of the moratorium period, into equity shares to be issued to the Government of India under Section 62(4) of the Companies Act, 2013,” added the company in its filing.
The conversion is to be completed within 30 days, subject to necessary approvals from relevant authorities, including the Securities and Exchange Board of India (SEBI). Upon completion of this transaction, the Government of India’s stake in Vodafone Idea Limited will rise from the existing 22.60% to approximately 48.99%. However, the promoters will retain operational control over the company, said the company is the SEBI filing. This equity conversion is expected to provide significant financial relief to Vodafone Idea by reducing its debt burden and improving its financial stability. This move is also expected to prevent the Telecom Industry from a duopoly.
At present, Mukesh Ambani owned Reliance Jio and Sunil Bharti Mittal’s Airtel dominate the telecom market in India with a 40.15% and 33.45% share, respectively. As far as active subscribers are concerned, Jio had 447.20 million in November 2024, followed by Airtel with 380.37 million subscribers.
