Vodafone Idea Allots Rs.36,950 Cr Shares to Govt; Stake Hits 48.99%

Key Takeaways:

• Rs.36,950 crore worth of shares allotted to Government of India.

• 3,695 crore equity shares issued at Rs.10 per share.

• Government stake now stands at 48.99%, the highest in the company.

• Vodafone Idea’s total paid-up capital reaches Rs.1.08 lakh crore.

• Shares issued under the 2021 telecom relief package reforms.

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Spectrum Dues Converted to Equity

The equity allotment is part of Vodafone Idea’s strategy to restructure its finances in line with the September 2021 Telecom Reforms and Support Package. The issuance was carried out under Section 62(4) of the Companies Act, 2013, following directions from the Ministry of Communications. The government’s stake, held via DIPAM (Department of Investment and Public Asset Management), offers critical breathing space to the telecom operator as it navigates mounting debts and competition.

Capital Structure Update

Following the share issuance, Vodafone Idea’s total paid-up capital now stands at Rs.1.08 lakh crore, comprising 10,834 crore equity shares. The company’s revised equity structure reflects the government’s near-majority stake, with the remainder shared between Vodafone Group, Aditya Birla Group, and public investors.

Revised Equity Snapshot

Impact On Vodafone Idea Share Price

Before the announcement, Vodafone Idea share price closed 2.58% lower at Rs.7.18 on the BSE. The equity conversion introduces short-term dilution, but may improve long-term financial viability. The strategic shift is expected to influence the Vodafone Idea share price as investors assess the implications of government ownership and future fundraising efforts. Stakeholders will closely monitor developments as the company strengthens its position in the competitive telecom market. Overall, the revised ownership could support stability, though the Vodafone Idea share price may fluctuate as market sentiment evolves.

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