The Indian government has indicated that there are no immediate plans to divest its stake in Vodafone Idea (Vi). The decision will be based on the company’s performance and signs of a successful turnaround strategy. Currently, the government is evaluating a request from Vodafone Idea for a potential waiver of bank guarantees amounting to Rs 24,747 crore, which are due for upcoming regulatory payments. Sources revealed that the telecom company needs to provide detailed information about its internal accruals and financial capacity before any decision is made. The Department of Telecommunications (DoT) has not yet decided on the waiver request, and thorough evaluations of the company’s operations and capital expenditure plans are underway. The government’s stake in Vodafone Idea was reduced to 23.8 percent from about 33 percent following a successful follow-on public offer (FPO) in April. Despite these changes, there has been no communication from the government regarding any stake sale to sovereign funds, according to Vodafone Idea CEO Akshaya Moondra. He emphasized that the company is not in discussions with the government on this matter. Vodafone Idea’s promoter holdings are 38.2 percent, split between Aditya Birla Group and Vodafone Plc Group. Institutional holdings stand at 20.1 percent, and non-institutional holdings are at 17.9 percent. The upcoming payments relate to spectrum purchased in pre-2022 auctions, with the company having opted for a four-year moratorium on payments under a government relief package. Vodafone Idea is currently negotiating debt funding for a comprehensive network expansion plan with a consortium of banks, including State Bank of India (SBI) and other public and private sector banks. The company aims to raise Rs 25,000 crore and secure additional non-fund-based facilities of up to Rs 10,000 crore to repay creditors, expand its 5G network, and bid for more spectrum.
