Vodafone Idea Moves to Safeguard Promoter Control Amid Rising Govt Stake

Vodafone Idea’s board has approved key amendments to its shareholders’ agreement, aiming to let promoters Aditya Birla Group and Vodafone Group retain management and governance rights despite the government’s stake soaring to 48.99%. The company will seek shareholder approval at an extraordinary general meeting on June 3.

 

The main change lowers the “Qualifying Threshold” for promoter control from 13% to 10%, explicitly excluding shares initially issued to the government for this calculation. This ensures that, even with their combined holding dropping to 25.57% (Aditya Birla Group at 9.5%, Vodafone Group at 16.07%), promoters can continue appointing directors and making key management decisions.

 

The move follows the government’s conversion of ₹36,950 crore in dues into equity, sharply increasing its ownership. Vodafone Idea’s total debt now stands at ₹2.17 lakh crore, underscoring the importance of stable management during its financial restructuring.

 

Sources: Economic Times, Business Standard, Goodreturns