The Indian government has clarified that it will not raise its stake in Vodafone Idea beyond the current 49%. Telecom Minister Jyotiraditya Scindia addressed this during the India Mobile Congress 2025, dismissing any intent of nationalisation amid the company's ongoing financial issues.
On October 9, 2025, Union Telecom Minister Jyotiraditya Scindia stated that there is no plan to raise the Centre’s stake in Vodafone Idea beyond 49%. He maintained that increasing the holding would convert the telco into a Public Sector Undertaking, which the government wants to avoid. The stake had reached this level after the Centre converted dues into equity as a one-off relief measure.
Vodafone Idea has been battling severe financial challenges, especially arising from its adjusted gross revenue (AGR) liabilities. As of March 2025, the company owed ₹83,400 crore in AGR dues, while its cash reserves stood at only ₹6,830 crore. The telco has approached the Department of Telecommunications for waivers related to interest, penalties, and their related components.
Read More: Vodafone Idea Share Price in Focus: 5G Rollout and ARPU Growth Drive Investor Attention!
To ensure sustainability, the government is exploring a potential deal with a strategic investor to inject $1 billion or around ₹8,800 crore into Vodafone Idea, in exchange for a 12% to 13% stake. This move would allow its current promoters, Aditya Birla Group and Vodafone Group, to dilute their holdings while the government retains its present share.
On October 9, 2025, Vodafone Idea share price opened at ₹9.08 on NSE, above the previous close of ₹9.04. During the day, it surged to ₹9.28 and dipped to ₹8.97. The stock is trading at ₹9.05 as of 1:17 PM. The stock registered a marginal change of 0.11%.
Over the past week, it has moved up by 2.61%, over the past month, it has moved up by 22.13%, and over the past 3 months, it has moved up by 24.66%.
The Indian government's decision to hold its 49% stake in Vodafone Idea aligns with its intent to keep the company in the private sector. With ₹83,400 crore in dues and a strategic investment being considered, the company remains at a crucial juncture in its turnaround efforts.
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Published on: Oct 9, 2025, 2:57 PM IST
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