Key Highlights
- Debt Repayment via Stake Sale: Vodafone Group sold its 22.56% stake in Vodafone Idea Limited (VIL), valued at ₹11,649 crore, to discharge debt obligations.
- Release of Share Pledge: HSBC Corporate Trustee Company (UK), acting on behalf of lenders, released a pledge on 15.72 billion equity shares after Vodafone settled outstanding dues.
- VIL’s Financial Challenges: Despite revenue growth in Q2 FY2024, Vodafone Idea continues to face AGR dues of ₹70,320 crore and spectrum payment liabilities of ₹1,39,200 crore.
Details of Vodafone Group’s Debt Deal
- Vodafone Group raised loans through entities based in India and Mauritius, with shares pledged as security.
- On December 27, 2024, Vodafone Group repaid dues of ₹11,650 crore (approx. 109 million pounds), leading to the release of pledged shares.
- This development marks Vodafone’s exit from VIL as a promoter shareholder.
Vodafone Idea’s Financial Snapshot
- AGR and Spectrum Liabilities: The company owes a total of ₹2,09,520 crore to the government.
- Q2 FY2024 Performance:
- Consolidated revenue grew 1.8%, reaching ₹10,918.1 crore compared to ₹10,714.6 crore YoY.
- Operating revenue increased slightly to ₹10,932.2 crore from ₹10,716.3 crore YoY.
- Quarterly Losses:
- September quarter loss narrowed to ₹7,175.9 crore from ₹8,746.6 crore in the previous year.
Current Shareholding and Price
- Government Ownership: 23.15%
- Aditya Birla Group: 14.76%
- Vodafone Idea Share Price: The stock closed at ₹7.41 per share on Friday.
This major restructuring signals a shift in the dynamics of Vodafone Idea’s ownership and reflects ongoing efforts to stabilize the telecom giant amidst mounting financial obligations.
Leave a Reply