The Indian government has clarified that its 49% stake in Vodafone Idea (Vi) does not mean it participates in the company's day-to-day management. The Communications Ministry made the clarification in a recent parliamentary question-and-answer session.
The government became Vi's largest shareholder after converting a portion of the telecom company's dues into equity. However, it said its shareholding does not translate into direct involvement in the company's routine business decisions.
According to Vodafone Idea's latest shareholding data, the Government of India holds 49% of the company. Vodafone Group holds 16.07%, while the Aditya Birla Group owns 9.57%. The remaining 25.36% is held by public shareholders.
The ministry also said there is no deviation from accepted corporate governance practices because of the government's stake. It means Vi continues to operate as a company with its own management and corporate decision-making structure.
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The clarification comes at an important time for Vodafone Idea. The telecom operator has been under financial pressure for years because of its large debt and telecom-related liabilities. At the same time, the company has recently increased investments in its 4G and 5G network.
Vi reported a consolidated loss of Rs 3,754 crore for the quarter ended June 2026, narrowing from Rs 6,608 crore a year earlier. Its revenue increased around 6% year-on-year to Rs 11,689 crore.
The company also reported its first quarterly subscriber addition since its 2018 merger, with its subscriber base reaching 193.1 million.
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