The Centre is not planning to divest its stake in Vodafone Idea (Vi) in the near future. Instead, it is considering a potential waiver of bank guarantees on the telecom company’s upcoming regulatory dues of ₹24,747 crore.
What Happened: The government will decide on selling its stake in Vi only after signs of a company turnaround are evident, as per a Moneycontrol report. The government’s stake in Vi reduced from approximately 33% to 23.8% following a successful follow-on public offer (FPO) in April.
While the government has reportedly initiated talks with potential investors, including sovereign wealth funds, for stake dilution, Vodafone Idea CEO Akshaya Moondra clarified that the telecom company is not in discussions with the government regarding any stake sale to sovereign funds.
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The Department of Telecommunications (DoT) has not yet decided on Vi’s request for a waiver of a financial bank guarantee of ₹24,747 crore for spectrum payments due in September 2025. “For any waiver, the DoT needs to evaluate their operations post funding thoroughly and if their capex plan is on track and would bring desired results. As of now, there hasn't been any decision on their request. We are still evaluating,” the report said quoting an official.
The Centre’s decision to hold off on divesting its stake in Vi comes at a time when the telecom company is grappling with a shrinking customer base. Vi lost 8.60 lakh subscribers in June, while competitors Reliance Jio and Bharti Airtel added 19.11 lakh and 12.52 lakh subscribers, respectively. The potential waiver of the bank guarantee could provide Vi with some financial relief, allowing it to focus on its network expansion plan and customer retention strategy.
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