TNFMumbai/ TNF
The Indian government has stated that it currently has no plans to sell its stake in Vodafone Idea (Vi). According to sources who spoke on condition of anonymity, any decision regarding the sale will be made only after the company’s financial health shows improvement. Additionally, the government is considering a request from Vodafone Idea to waive a bank guarantee of ₹24,747 crore required by the Department of Telecommunications (DoT).
Vodafone Idea is actively working on strategies to enhance its financial condition. A senior official from the Telecom Ministry noted that the company needs to provide detailed information about its internal resources and its ability to manage financial burdens. Despite raising funds through a follow-on public offering (FPO) earlier this year, Vodafone Idea has not yet shared significant updates on its operational improvements.
In April 2024, Vodafone Idea raised ₹18,000 crore from retail and institutional investors, leading to a significant increase in its stock price. As of August 27, 2024, the company’s share price closed at ₹16.09, up by 1.9%. Despite recent reports of potential discussions with sovereign wealth funds about selling its stake, Vodafone Idea’s CEO, Akshay Moondra, has confirmed that there have been no such negotiations with the government.
