Government to Cap Stake in Vodafone Idea at 49%: Confirms Telecom Minister

On July 3, 2025, Vodafone Idea shares soared around 2%, reaching a day high of ₹7.70, at 10:55 AM after opening at ₹7.53. The gain in Vodafone Idea shares follows the statement that the government will not raise its stake in Vodafone Idea Ltd. beyond the current 49%, Telecom Minister Jyotiraditya Scindia told CNBC-TV18 in an exclusive interview on Wednesday, July 2.

Scindia emphasised that any further conversion of the company’s dues into equity is off the table, as it would push Vodafone Idea into becoming a public sector undertaking (PSU)—a move the government firmly wants to avoid. “We have no intention of turning Vodafone Idea into a PSU,” the minister stated, ruling out any possibility of increasing the government’s equity share.

He further clarified that there are no ongoing discussions regarding alternative options or additional support for the debt-ridden telecom operator.

Vodafone Idea has previously cautioned that without further government assistance, its ability to remain a going concern beyond FY2026 could be at risk.

Government Increased Stake

In April 2025, the company converted ₹36,950 crore worth of outstanding dues into equity, raising the government’s stake from 22% to 48.99%. With this move, the government became the single largest shareholder in Vodafone Idea—though notably, it is not classified as a promoter.

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The equity conversion provided much-needed financial breathing room for Vodafone Idea, allowing it to focus on improving operations and competing more effectively in the Indian telecom market. However, the government has consistently maintained that it has no plans to take over or run the company.

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