Vodafone Idea share price soars over 10%: Here is why

The government is already the single largest shareholder in the battered company with a 22.6% stake, and the fresh move will take its total holding to more than the combined stake of the company's promoter firms – Vodafone and Aditya Birla Group.

Following the development, shares of Vodafone Idea were trading at ₹8.04 apiece, surging 10.26% on the National Stock Exchange.  

According to media reports, the move is expected to reduce the telco’s statutory liabilities by that amount to boost its commercial viability and help prevent an industry duopoly of Reliance Jio and Bharti Airtel.

Vodafone UK’s stake in Vi declined to around 16.1% from about 24.4% before the transaction, while ABG’s ownership dropped to 9.4% post-transaction, from a shade over the current 14%, an Economic Times report said.

VIL promoters hold 14.76% and 22.56% stakes in the company, respectively, at present. However, the promoters will continue to have operational control of the company.

Vodafone Idea (VIL) had been directed to issue 3,695 crore equity shares with a face value of ₹10 each at an issue price of ₹10 each within 30 days after the issuance of the necessary order from relevant authorities, including the Securities and Exchange Board of India (SEBI).

The spectrum and adjusted gross revenue (AGR) instalment due for FY26, including the 2015 spectrum auction shortfall, aggregated to ₹32,723.5 crore.

The move follows a series of reliefs from the government to help the company remain afloat in the market to maintain competition.

As of December 2024, the outstanding debt from banks (including interest accrued but not due) of the group is ₹2,345.1 crore, and the deferred payment obligation towards spectrum payable over the years till FY44 and AGR (including interest accrued but not due) payable over the years till FY31 aggregates to over ₹2.27 lakh crore.