Vodafone Idea Share Price Hits Upper Circuit; Here’s Why

Vodafone Idea Limited informed the stock exchanges about a major development under Regulation 30 of SEBI Listing Regulations. The Ministry of Communications, Government of India, has approved the conversion of the company’s outstanding spectrum auction dues into equity shares. This move aligns with the reforms and support package for the telecom sector announced in September 2021.

Conversion Amount and Share Details

The total amount to be converted into equity is ₹36,950 crore. Vodafone Idea has been directed to issue 3,695 crore equity shares of face value ₹10 each, at the same issue price of ₹10 per share. The pricing follows regulatory norms, ensuring it is not below the par value and is calculated based on the higher of the volume-weighted average price of the last 90 or 10 trading days prior to the relevant date, which was set as 26 February 2025.

Government Shareholding to Rise Significantly

Following the issuance, the Government of India’s shareholding in Vodafone Idea will increase from 22.60% to approximately 48.99%. Despite this rise in ownership, the company clarified that the promoter group will retain operational control.

Awaiting Regulatory Approvals

Vodafone Idea also mentioned that it would proceed with the share issuance after receiving the necessary approvals from relevant authorities, including the Securities and Exchange Board of India (SEBI). The company is expected to complete the process within 30 days of receiving these clearances.

VI Share Price Performance

In response to this material development, Vodafone Idea’s share price surged and hit the upper circuit. The shares of Vodafone Idea  was up by 10% at  ₹7.48 as of 10:00 AM. 

Conclusion 

This strategic move significantly eases Vodafone Idea’s debt burden and strengthens its financial position. With government backing, the company gains a renewed lifeline.

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