Britain-based Vodafone Group has repaid the dues of about Rs 11,650 crore (109 million pounds) raised in exchange for Vodafone-Idea shares. The company informed the stock market that to repay this loan, the group had pledged almost its entire stake in Vodafone-Idea.
Details of pledged shares
Vodafone Group had raised the debt through its entities based in Mauritius and India. For this, Vodafone-Idea shares were pledged in favor of HSBC Corporate Trustee Company (UK).
- On 27 December 2024, after the loan was repaid, HSBC Corporate Trustee released the pledged shares.
- Vodafone Group currently holds 22.56% stake in Vodafone-Idea Limited.
- Aditya Birla Group holds 14.76% and the Government of India holds 23.15%.
Important meeting in January 2025
Vodafone-Idea’s board of directors recently approved the issuance of 175.53 crore shares on preferential basis to Vodafone group units to raise up to Rs 1,980 crore.
- The issue price of these shares has been fixed at Rs 11.28 per equity share.
- An extraordinary general meeting will be held on 7 January 2025 to discuss and approve this proposal.
September quarter performance
Vodafone-Idea’s loss narrowed to Rs 7,175.9 crore in the September quarter from Rs 8,746.6 crore in the same quarter last fiscal.
- Losses decreased due to increase in average revenue per customer (ARPU).
- ARPU improved after tariff rates were hiked in July 2024.
- However, the increase in charges led to a decline in the number of customers.
stock market fluctuations
Vodafone-Idea shares have seen ups and downs in recent months.
- On 29 December 2024, Vodafone-Idea shares closed at Rs 7.47, a decline of 1.32% from the previous day.
- The share price reached Rs 19.15 in June 2024.
- The stock fell to a low of Rs 6.60 in November 2024.
Challenges and expectations of Vodafone-Idea
Vodafone-Idea is facing financial crisis and debt challenges. But the company is expected to get relief from recent steps and capital raising plans. Reduction in losses and improvement in ARPU in the September quarter are positive signs for the company.
