Shares of telecom giant Vodafone Idea (Vi) fell over 3 percent on May 30 and traded at Rs 6.92 per share. This sharp fall in share price comes ahead of the telecom giant’s earnings announcement scheduled today.
Notably, Vodafone Idea’s board is set to approve a fund-raising plan, the company had informed the exchanges. The fund-raising plan to be announced by the company will be actively monitored given the company’s mounting dues.
Earlier this year, the telecom giant had cautioned the government that it cannot operate beyond the current fiscal year 2026 without its support and may have to take the bankruptcy route.
VIL CEO Akshay Mundra said in a letter to the DoT secretary, “Without timely support from the Government of India on AGR, VIL will not be able to operate beyond FY26 as bank funding discussions will not move forward.”
Earlier this year, the firm had announced that the central government would convert its outstanding spectrum dues into equity shares. VI will issue 3,695 crore equity shares at a price of Rs 10 per share, converting the dues into stock worth Rs 36,950 crore and raising the government’s stake in the firm from 22.6 percent to 48.99 percent.
After the equity conversion, Vodafone Idea owes the government Rs 1.95 lakh crore of AGR and spectrum dues. In addition, the firm has sought a waiver of adjusted gross revenue (AGR) dues along with its telecom peers.
Vodafone Idea sought a waiver of Rs 45,457 crore in dues. However, the Supreme Court rejected the company’s pleas. “We are really surprised by these petitions that have come before us.
This is not expected from a multinational company. We will dismiss it,” the bench told senior advocate Mukul Rohatgi, appearing for Vodafone Idea. Despite today’s fall in the share price, the stock has gained over 2 percent in the last five days.
However, the stock has fallen nearly 17 percent in the last six months and over 52 percent in the last one year.
