Vodafone Idea Ltd (VIL) has announced that the Ministry of Communications, Government of India, has decided to convert its outstanding spectrum auction dues worth ₹36,950 crore into equity shares. This conversion follows the September 2021 Telecom Sector Reforms and Support Package, and marks a major step in the ongoing government efforts to stabilize and support the financially stressed telecom company.
In a filing to the stock exchanges on March 30, 2025, the company confirmed it has received an order from the government, dated March 29, approving the conversion of deferred dues — which were repayable after the moratorium period — into equity under Section 62(4) of the Companies Act, 2013.
The company has been directed to issue 3,695 crore equity shares with a face value of ₹10 each. These shares must be issued within 30 days of obtaining necessary regulatory approvals, including from the Securities and Exchange Board of India (SEBI) and the stock exchanges.
The issue price for the shares will be based on the higher of the volume-weighted average price of the company’s equity shares during the past 90 or 10 trading days prior to the relevant date (February 26, 2025), subject to compliance with Section 53 of the Companies Act, which prohibits issuance below face value.
Following the conversion, the Government of India’s holding in Vodafone Idea will rise significantly from 22.60% to approximately 48.99%. However, the promoters will continue to retain operational control over the company.
Vodafone Idea stated that it will take all necessary actions to undertake the share issuance upon receipt of required approvals.
This conversion marks a significant turning point in the company’s financial restructuring and is expected to bolster investor confidence as Vodafone Idea continues its turnaround efforts in the hyper-competitive Indian telecom market.
