Vodafone Idea shares in focus after issuing shares worth Rs 36,950 crore to DIPAM

Vodafone Idea has issued 3,695 crore equity shares worth Rs 36,950 crore to the Department of Investment and Public Asset Management (DIPAM) after the government decided to convert the telco's spectrum auction dues into equity. Following this allotment, the government’s stake in the company now stands at 48.99% of the expanded paid-up capital.

In a regulatory filing, Vodafone Idea Ltd announced that its capital-raising committee, during a meeting on April 8, 2025, issued and allotted 3,695 crore equity shares with a face value of Rs 10 each, priced at Rs 10 per share, totaling Rs 36,950 crore to the Department of Investment and Public Asset Management, Government of India (acting through the President of India).This follows the government's decision to convert outstanding spectrum auction dues, including deferred payments due after the moratorium period, into equity shares for the government.As a result of the allotment, the company's paid-up equity share capital has increased to Rs 10,83,43,03,50,010, consisting of 1,08,34,30,35,001 equity shares with a face value of Rs 10 each.



Earlier on Thursday, market regulator Securities and Exchange Board of India (Sebi) granted the government an exemption from complying with norms regarding its proposed direct acquisition of equity shares in Vodafone Idea.On March 30, 2025, the company submitted an application requesting the exemption. Sebi has instructed the government to file a report within 21 days of completing the acquisition.

The proposed acquisition aims to provide relief to the company, as stated in a Sebi order, highlighting that it is in the public interest by improving liquidity and cash flow for the telecom service provider (TSP).Shares of the company have tumbled 45% in the last three years. Meanwhile, the stock has offered 124% returns in the previous five years.

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