In an order dated March 29, the Ministry of Communications directed Vodafone Idea to issue equity shares worth ₹36,950 crore to the government under Section 62(4) of the Companies Act, 2013. The company received the communication today and is required to complete the issuance within 30 days, subject to approvals from relevant authorities, including the Securities and Exchange Board of India (SEBI).

The allocation will involve issuing 3,695 crore equity shares with a face value of ₹10 each at an issue price of ₹10 per share. The pricing has been determined based on the higher of the volume-weighted price over the last 90 trading days or the last 10 trading days before February 26, 2025, in accordance with Section 53 of the Companies Act, which prohibits issuing shares below their par value.

Following this transaction, the government’s holding in Vodafone Idea will rise from 22.60% to nearly 48.99%. However, the company assured that the promoters will continue to retain operational control.

“The company will take all necessary steps to execute the share issuance upon receipt of requisite approvals,” Vodafone Idea stated.