Vodafone Idea: Promoter Groups Retain Control Amid Government Stake Surge

Vodafone Idea's board approved changes to its shareholder agreement, allowing Aditya Birla Group and Vodafone Group to maintain management rights, despite the government increasing its stake to 48.99%. An extraordinary meeting is set for June 3 to endorse these amendments. The company's debt rose to Rs 2.17 lakh crore.

Facing rising debts, Vodafone Idea has announced that its board has approved revisions to the shareholder agreement, enabling prominent stakeholders Aditya Birla Group and Vodafone Group to maintain a firm grip on governance and management, despite an increased government stake of 48.99% in the telecom company.

An extraordinary general meeting scheduled for June 3 will seek approval from shareholders for the proposal. Key amendments include lowering the 'Qualifying Threshold' from 13% to 10%, excluding government-issued equity shares for this purpose, to ensure the promoters retain control.

As the government converted Rs 36,950 crore of dues into equity, Vodafone Idea's overall debt surged to Rs 2.17 lakh crore by December 2024. The revisions aim to secure management rights for the promoters, despite their reduced shareholding of 9.5% and 16.07% respectively.