Introduction:
Telecom stock has announced a major development with the government converting spectrum dues worth ₹36,950 Crores into equity. This move significantly boosts government holding and supports the telecom sector revival under the 2021 reform package, ensuring operational continuity for promoters.
Share Price movement of Vodafone Idea:
On April 1, 2025, Vodafone Idea Limited opened at ₹7.48, reaching a high of ₹7.48 and a low of ₹7.48, up 10.00% from its previous close of ₹6.80. The stock is currently trading at ₹7.48, with a market cap of ₹53,401.99 Crores.
Vodafone Idea hits 10% upper circuit:
Vodafone Idea Limited has received communication from the Ministry of Communications regarding the conversion of outstanding spectrum dues into equity. This decision aligns with the 2021 Telecom Reforms Package. The total conversion amount is ₹36,950 Crores as per the order dated March 29, 2025.
The company has been mandated to issue 3,695 Crore equity shares at ₹10 each under Section 62(4) of the Companies Act, 2013. The pricing is done as per SEBI guidelines using volume-weighted average prices to ensure compliance with Section 53, which prohibits issue below par value.
Post-conversion the share of Government of India will increase from 22.60% to about 48.99%, while promoters will remain in control. The company will take necessary approvals and steps for completion of this equity issuance in 30 days.
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Stock performance of Vodafone Idea for Period of 1 week, 6 months and 1 year:
Vodafone Idea’s stock has shown consistent declines over multiple timeframes. In the past week, it dropped by 4.90%. Over the last six months, it fell 31.1%, and the one-year return stands at a significant negative 51.4%, reflecting prolonged investor concerns.
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Shareholding pattern of Vodafone Idea:
| All values in % | Dec-24 | Sep-24 | Jun-24 |
| Promoters | 37.32 | 37.32 | 38.17 |
| FII | 10.17 | 12.69 | 12.67 |
| DII | 4.31 | 4.89 | 7.47 |
| Retail & others | 48.2 | 45.09 | 41.66 |
About Vodafone Idea:
Vodafone Idea Ltd(NSE: IDEA) is a major Indian telecom service provider formed by the merger of Vodafone India and Idea Cellular. It offers voice, data, and enterprise services nationwide and is working towards 5G rollout and digital infrastructure expansion to regain market competitiveness.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
