Vodafone Group offloads entire stake in VIL to clear debt of Rs 11,650 cr
Mumbai: The UK-based Vodafone Group has paid off dues amounting to Rs 11,650 crore (approximately £109 million), which were tied to Vodafone Idea Ltd (VIL) shares, The Economic Times reported.
To clear this debt, Vodafone Group gave up almost its entire stake in VIL, according to BSE filings.
Vodafone Group holds a 22.56% stake in VIL, while the Aditya Birla Group owns 14.76%, and the Indian government holds 23.15%, as of September 30, 2024.
Based on VIL's stock closing price of Rs 7.41 per share on Friday, the shares are valued at approximately Rs 11,649 crore.
The pledge was made in favour of HSBC Corporate Trustee Company (UK) to secure debt raised by Vodafone Group's entities in Mauritius and India.
"On 27 December 2024, HSBC Corporate Trustee Company (UK) Limited acting as the security trustee for the lenders has released the pledges pursuant to repayment of the outstanding dues owed to the lenders by the Vodafone Promoter Shareholders.
"Consequently, the indirect encumbrance on 15,720,826,860 equity shares of the target company held by the Vodafone Promoter Shareholders representing 22.56 percent of the equity share capital of the target company on a fully diluted basis has been released," the filing stated.
As of June 30, 2024, VIL owed Rs 2,09,520 crore to the Indian government, including Rs 1,39,200 crore in deferred spectrum payments and Rs 70,320 crore in adjusted gross revenue (AGR) dues.
In November, VIL reported a consolidated loss of Rs 7,175.9 crore for the September quarter, compared to a loss of Rs 8,746.6 crore in the same period last year.
The company’s consolidated income from services grew 1.8% year-on-year to Rs 10,918.1 crore in the second quarter, while its revenue from operations increased to Rs 10,932.2 crore from Rs 10,716.3 crore in the same period a year ago.
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