Govt To Raise Stake in Vodafone Idea From 22.6% to 49%, With Fresh Share Acquisition Worth Rs 37,000 Crore

The government has agreed to raise stake in Vodafone Idea to 48.99 per cent with fresh acquisition of shares worth Rs 36,950 crore in lieu of outstanding spectrum auction dues, the company said in a regulatory filing on Sunday. The government is the single-largest shareholder in the debt-ridden Vodafone Idea with 22.6 per cent stake.“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,” said Vodafone Idea in the BSE filing. According to the filing data, ₹36,950 crore is set to be converted into 3,695 equity shares with a face value of ₹10 apiece. The government of India's stake in the telecom operator will increase from its current levels of 22.60 per cent to nearly 48.99 per cent after the issue of the equity shares. “The total amount to be converted into equity shares is Rs. 36,950 Crore. The Company has been directed to issue 3,695 Crore equity shares of the face value of ₹10/- each at an issue price of ₹10/- each within a period of 30 days after issuance of necessary order from relevant authorities including from Securities and Exchange Board of India,” said Vodafone Idea.

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Vodafone Idea shares closed 1.73 per cent lower at ₹6.81 after Friday's stock market session on March 28, compared to ₹6.93 at the previous market close.The stock is currently trading right above its 52-week low level at ₹6.60 on November 22, 2024, while the 52-week high level was at ₹19.15 on June 28, 2025, according to the BSE data. Vodafone Idea shares have given stock market investors more tan 116 per cent returns in the last five years. However, the stock has lost 51.43 per cent in the last one-year period. On a year-to-date (YTD) basis, Vodafone Idea stock has lost 15.09 per cent in 2025.Vodafone Idea shares jumped nearly 5 per cent on March 19 after the company announced the launch of its 5G services in Mumbai.“With this rollout, Vodafone Idea is set to enhance mobile experience with widespread coverage at competitive pricing,” said the company in the exchange filing.The company also plans to invest ₹50,000-55,000 crore over the next three years as it aims to expand its 4G network coverage area to reach 90 per cent of the Indian population. Last year In September 6, Kumar Mangalam Birla acquired 1.86 crore shares of Vodafone Idea while  Pilani Investment bought 30 lakh shares on the same date.September 6 is also the day when shares of Vodafone Idea had declined over 11% after brokerage firm Goldman Sachs had maintained its "sell" rating on the telecom service provider and projected a price target of ₹2.5 on the stock, which had implied a potential downside of 80% from those levels. The foreign brokerage projected an additional 300 basis points decline in Vodafone Idea's market share over the next 3-4 years. Additionally, the company has significant adjusted gross revenue (AGR) and spectrum-related payments, which are expected to begin in financial year 2026.

Vi's stock performance has also been kind of poor in the past few months, as it has declined 18 per cent in the last 30 days. Shares of Vodafone Idea are down over 50 per cent in the last six months while they have delivered negative returns of nearly 49 per cent in the last one year, according to BSE analytics. There has been quite a free fall in the shares of Vodafone Idea, which have declined from their 52-week high price of Rs 19.15 apiece to under Rs 8 levels now. The downfall is likely to continue in Vi stock, according to leading brokerage Motilal Oswal. In its recent note, the brokerage has given a Sell rating to Vodafone Idea.The company announced its October-December 2024 quarterly results last month, reporting a decline in its net loss. The telco also posted its highest quarterly cash EBITDA since merger of Rs 24.5 billion, up 15 per cent YoY.