Vodafone Idea has warned that in the absence of government support, the value of the government’s equity stake could fall to zero, resulting in no recovery on the ₹1.18 lakh crore of spectrum dues.
The financially stressed telco also claimed that it has not received support from banks despite a ₹26,000 crore equity infusion and the government’s equity conversion.
Vodafone Idea told the government that without its support, bank funding will not progress, and the company will not be able to operate beyond FY26.
If government support does not materialise and Vodafone Idea fails to pay its adjusted gross revenue (AGR) dues, the company will be forced to approach NCLT, a process that could be long drawn.
If Vodafone Idea goes to NCLT, over 200 million subscribers could be impacted.
A disruption in Vodafone Idea’s network would have a cascading impact on other sectors and could set back the country’s digital ambitions.
Following the equity conversion, Vodafone Idea still owes the government ₹1.95 lakh crore in AGR and spectrum dues.
Vodafone Idea had filed a fresh plea in the Supreme Court, seeking additional relief from its AGR dues. It cited the earlier AGR judgment in its plea and is seeking a waiver of over ₹30,000 crore in dues, specifically the penalty and interest on the penalty component of the AGR levy.
The company argued that the government is “handicapped” in granting further relief due to constraints imposed by the AGR judgment.
It further claimed that the government is now effectively a “partner” in the company, holding a 49% equity stake after converting AGR and spectrum dues into equity.
Citing pain in the telecom sector, the telco claims that the sector will collapse without additional government support.
The company has requested an urgent hearing on the matter, scheduled for May 19.
Based on the latest shareholding pattern shared by Vodafone Idea, Foreign Portfolio Investors had a 6.56% stake in the company, but none had a stake above 1%, for their names to feature in the shareholding pattern.
The latest shareholding also shows the government holding 49% stake in the telecom operator, after having converted its spectrum liabilities into equity. The company has over 59 lakh small shareholders, or those with an authorised share capital of up to ₹2 lakh.
Shares of Vodafone Idea are currently trading 3.87% higher at Rs 7.51. The stock has fallen 7% so far in 2025.
