Earlier this year, in a setback to telecom majors, including Bharti Airtel and Vodafone Idea, the Supreme Court had refused to review its 2021 order rejecting their pleas for rectification of alleged errors in calculation of AGR dues payable by them. File.
| Photo Credit: Reuters

Vodafone Idea’s total subscriber base stood at 19.98 crore and 4G subscriber base at 12.6 crore.
| Photo Credit: Reuters

Vodafone Idea Ltd for the third quarter ended December 31, 2024 narrowed its net loss to ₹6,609 crore from net loss of ₹6,986 crore in the year ago period.

The telecom company’s revenue from operations during the quarter increased 4% to ₹11,117 crore from ₹10,673 crore in the same period last year. 

Customer ARPU grew 4.7% QoQ. For the quarter it stood at ₹173 vs ₹166 in Q2FY25. Total subscriber base stood at 19.98 crore and 4G subscriber base at 12.6 crore.

Akshaya Moondra, CEO, Vodafone Idea Ltd, said “We are driving investments and the velocity of capex deployment is set to accelerate in the coming quarters. Concurrently, the phased rollout of 5G services is underway, targeting key geographies.” 

“With our intensifying investments, we anticipate further improvement in both operational and financial performance. With the recent equity infusion of ₹1,910 crore from one of our promoters, we have now secured approximately ₹26,000 crore in fresh equity capital over the past 10 months. 

“In parallel, we continue to engage with lenders for debt financing, aligning with our planned network expansion investment of ₹50,000–55,000 crore over a three-year period,” he added.

The debt from banks has reduced by ₹5,290 crore during the last one year and stood at ₹2,330 crore (was at ₹7,620 crore in Q3FY24). The cash and bank balance stood at ₹12,090 crore as of December 31, 2024, the company said. 

The 4G subscriber base stood at 12.6 crore at the end of Q3FY25, increasing from 12.56 crore as of Q3FY24. Customer ARPU (ex M2M) improved to ₹173 vs ₹166 in Q2FY25, up 4.7% on QoQ basis, driven by tariff hike and customer upgrades. 

On January 9, 2025, the company completed the allotment of 170 crore equity shares of face value of ₹10 each at an issue price of ₹11.28 per share (including premium of ₹1.28 per share) for an aggregate consideration of ₹1,910 crore to Vodafone Group (Promoter) entities on a preferential basis. 

As a result of this preferential allotment, the aggregate shareholding of the Promoter Group in VIL has increased from 37.3% to 38.8%. During last 10 months, Vi raised equity of ₹26,000 crore including ₹18,000 crore from the largest FPO in India, Promoters infusion of ₹4,000 crore and conversion/equity issuance to key vendors of ₹4,000 crore. 

A man uses an umbrella as he walks past a Vodafone mobile phone store in Liverpool, Britain, October 8, 2024.
| Photo Credit: Reuters

U.K.-based Vodafone Group has cleared dues of around ₹11,650 crore or about 109 million pound that it raised against shares of Vodafone Idea, according to a regulatory filing.

Vodafone Group had pledged almost the entire stake in VIL to raise the debt.

The pledge was created in favour of HSBC Corporate Trustee Company (U.K.) for the debt raised by Mauritius and India-based entities of Vodafone Group.

“On 27 December 2024, HSBC Corporate Trustee Company (U.K.) Limited acting as the security trustee for the lenders has released the pledges pursuant to repayment of the outstanding dues owed to the lenders by the Vodafone Promoter Shareholders.

“Consequently, the indirect encumbrance on 15,720,826,860 equity shares of the target company held by the Vodafone Promoter Shareholders representing 22.56% of the equity share capital of the target company on a fully diluted basis has been released,” the filing said.

“Consequently, the indirect encumbrance on 15,720,826,860 equity shares of the target company held by the Vodafone Promoter Shareholders representing 22.56% of the equity share capital of the target company on a fully diluted basis has been released,” the filing said.

The shares are valued at around ₹11,649 crore as per the closing price of ₹7.41 apiece of Vodafone Idea stock on Friday.

Vodafone Group holds a 22.56% stake, while the Aditya Birla Group holds 14.76%. The government has a 23.15% stake as of September 30, 2024.

New Delhi:

Hailing the government’s landmark decision to waive bank guarantees for telecom spectrum acquired before 2022, industry players on Tuesday said such supportive policy measures are instrumental in creating an enabling environment for technological innovation and boost digital infrastructure, especially in rural areas.

The decision is expected to offer significant relief to leading telecom companies, especially Vodafone Idea, which collectively owe over Rs 30,000 crore in bank guarantees to the government.

“We welcome the Union Cabinet’s move and thank the government on approving the waiving of bank guarantee for telecom operators on spectrum purchased before 2022. This landmark decision will significantly help reduce the financial burden on the telecom operators in the country,” said Lt Gen Dr SP Kochhar, Director General, Cellular Operators Association of India (COAI).

The Department of Telecommunications (DoT) had earlier proposed the move, responding to industry demands for relief. Telecom companies had written to the DoT, urging the removal of bank guarantee requirements for pre-2022 spectrum acquisitions.

This decision builds on the 2021 Cabinet reforms, which waived the need for bank guarantees on spectrum acquired prospectively.

“While we are studying the details of the decision and will be able to have a more substantial view of the same, we feel positive that this decision will enhance cash flow, free up capital and enable capital investments in network expansion and technology upgrades, ensuring a stronger and robust rollout of telecom networks in the future,” said COAI.

Vodafone Idea is likely to submit bank guarantees totalling approximately Rs 24,600 crore. Its share closed over 9 per cent at Rs 7.61 apiece on Tuesday.

The September 2021 telecom reforms had provided telcos with a four-year moratorium on spectrum payments and adjusted gross revenue dues.

Digital Infrastructure Providers Association Applauds Cabinet’s Strategic Move to Waive Bank Guarantees for Telecom Spectrum

Manoj Kumar Singh, Director General, Digital Infrastructure Providers Association (DIPA), said the waiver, which extends to spectrum acquisitions made prior to 2022, builds upon the forward-thinking reforms initiated in 2021.

“By removing the bank guarantee requirements retroactively, the government has created a more flexible financial environment that will enable telecom operators to optimize their capital allocation, enhance liquidity, and accelerate infrastructure investments. This decision is particularly significant for operators like Vodafone Idea, who have been navigating complex financial challenges,” Singh added.

Bank guarantees have traditionally locked substantial capital, with telecom operators typically maintaining 3-5 per cent of spectrum auction value as guarantee, translating to hundreds of crores of rupees.

By removing these guarantees for pre-2022 spectrum acquisitions, the government is effectively unlocking critical working capital that can be strategically reinvested in network infrastructure, technology upgradation, and expansion of digital connectivity.

“Bank guarantees have been a significant financial constraint for telecom operators. This waiver will provide immediate liquidity relief, enabling operators to redirect financial resources towards critical infrastructure development, especially in underserved and rural regions,” said Singh.

The timing of this intervention is particularly crucial. As India rapidly advances towards 5G deployment and prepares for the upcoming 6G stack, such supportive policy measures are instrumental in creating an enabling environment for technological innovation, said DIPA.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Debt-laden telecom operator Vodafone Idea Ltd. has raised ₹18,000 crore.
| Photo Credit: Reuters

Telecom operator Vodafone Idea’s (VIL) board has fixed the follow-on public offering (FPO) offer price at ₹11 per equity share, according to a regulatory filing.

The anchor investor offer price of ₹11 per equity share has also been greenlit by the board.

“… Following resolutions were also passed… determined and approved the offer price of ₹11 per equity share… approved the anchor investor offer price of ₹11 per equity share,” VIL informed.

Debt-laden telecom operator Vodafone Idea Ltd. has raised ₹18,000 crore pulling off India’s largest-ever FPO as the issue got subscribed nearly seven times after institutional investors poured in money, stock exchange data showed on April 22 evening.

The fundraise will arm VIL with an ammo to improve its competitive positioning in the Indian telecom market, where it trails Reliance Jio and Bharti Airtel, by a wide margin.

“Further to our letter dated 17 April 2024, intimating you about the meeting of the board of directors of the company to be held on 22 April 2024, in respect of the offer, we wish to inform you that the Board, at its meeting held today that is 22 April 2024 has approved and adopted the prospectus dated 22 April 2024 in connection with the offer,” VIL said.

The prospectus has been filed with the Registrar of Companies, Gujarat at Ahmedabad, and submitted to the Securities and Exchange Board of India, BSE Limited and National Stock Exchange of India Limited, it added.