Vodafone Idea Allots Equity Shares Worth Rs 36,950 Crore To Government

Vodafone Idea Ltd. on Tuesday said that it has allotted equity shares worth a total of Rs 36,950 crore to the Government of India.

The company's capital raising committee of board of directors has, at its meeting held on the same day, issued and allotted 3,695 crore shares of face value of Rs 10 each at an issue price of Rs 10 per equity share "to the Department of Investment and Public Asset Management, Government of India (acting through President of India)," according to the exchange filing.

Post the aforesaid allotment, the government's shareholding in the company stands at 48.99%, up from 22.6%.

The development follows an order passed by the Ministry of Communications on March 29, 2025, 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.

On March 30, the company had communicated about the development via a regulatory disclosure.

In that filing, Vodafone Idea had stated that the pricing of shares that will be allotted has been arrived basis the higher of the volume weighted price of equity shares during last 90 trading days preceding the relevant date or 10 days preceding the relevant date, which was Feb. 26, 2025.

It had clarified that the price was subject to provision of Section 53 of the Companies Act, 2013. As a result, shares cannot be issued at less than the par value.

The filing had also noted that the promoters will continue to have operational control of the company.

Shares of Vodafone Idea on Tuesday closed 2.58% lower at Rs 7.18 apiece on the BSE, compared to a 1.49% advance in the benchmark Sensex.