The Indian authorities is ready to extend its stake in Vodafone Thought Restricted (Vi) to roughly 48.99 p.c after changing excellent spectrum public sale dues into fairness shares. The telecom firm disclosed the event at this time, aligning with the sectoral aid package deal launched in September 2021.
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Authorities’s Stake in Vi Set to Rise
In an order dated March 29, the Ministry of Communications directed Vodafone Thought to situation fairness shares value Rs 36,950 crore to the federal government beneath Part 62(4) of the Corporations Act, 2013. The corporate acquired the directive at this time and should full the issuance inside 30 days, pending approvals from regulatory authorities, together with the Securities and Trade Board of India (SEBI).
As a part of the transaction, Vodafone Thought will situation 3,695 crore fairness shares with a face worth of Rs 10 every at a problem worth of Rs 10 per share. The pricing is decided based mostly on the upper of the volume-weighted worth during the last 90 buying and selling days or the final 10 buying and selling days earlier than February 26, 2025, as per Part 53 of the Corporations Act, which prohibits issuing shares beneath par worth.
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Regulatory Approvals and Compliance
Submit-issuance, the federal government’s stake in Vodafone Thought will surge from 22.60 p.c to just about 48.99 p.c, making it the most important shareholder. Nevertheless, the corporate reassured stakeholders that the promoters would retain operational management.
“Submit the aforesaid issuance of fairness shares, the Authorities of India shareholding within the Firm will enhance from present 22.60 p.c to roughly 48.99 p.c. The promoters will proceed to have operational management of the corporate,” Vodafone Thought mentioned in an change submitting on March 30, 2025.
“The Firm will take all obligatory actions to undertake the aforesaid issuance, upon receipt of the requisite approvals,” Vodafone Thought added.
