Vodafone Idea shares in focus after GoI’s stake in telecom company jumps to 48.99%

Vodafone Idea share price will remain in focus in Wednesday's trading session after the telecom major allotted 3,695 crore equity shares valued at ₹36,950 crore to the Department of Investment and Public Asset Management (DIPAM), following the government's decision to convert the telecom company's spectrum auction dues into equity. As a result of this share issuance, the government now holds a 48.99% stake in Vodafone Idea’s enlarged paid-up capital.

On Tuesday, Vodafone Idea share price closed 2.58 per cent lower at ₹7.17. The stock has descended over 10.38 per cent in past five trading sessions.

Vodafone Idea share allotment details

In a regulatory filing, Vodafone Idea Ltd said that its capital-raising committee, in a meeting held on April 8, 2025, approved the issuance and allotment of 3,695 crore equity shares, each with a face value of ₹10 and issued at ₹10 per share. The total transaction amounted to ₹36,950 crore and was allotted to the Department of Investment and Public Asset Management, Government of India, representing the President of India.

This comes after the government's decision to convert outstanding spectrum auction dues—including deferred payments due post-moratorium—into equity shares held by the government.

Following this share allotment, the company’s paid-up equity share capital has risen to ₹10,83,43,03,50,010, comprising 1,08,34,30,35,001 equity shares with a face value of ₹10 each.

Earlier on Thursday, the Securities and Exchange Board of India (SEBI) granted the government an exemption from adhering to regulatory norms related to its proposed direct acquisition of equity shares in Vodafone Idea.

On March 30, 2025, the company submitted an application seeking an exemption. SEBI has directed the government to submit a report within 21 days after the acquisition is completed.

According to a SEBI order, the proposed acquisition is intended to support the company and is considered to be in the public interest, as it would enhance liquidity and cash flow for the telecom service provider (TSP).

The company’s shares have declined by 45% over the past three years. However, over the last five years, the stock has delivered a return of 124%.

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