Shares of Vodafone Idea Ltd gained more than 5 percent after shareholders approved a ₹4,730 crore investment from the Aditya Birla Group through a preferential allotment of warrants.
The stock climbed to an intraday high of ₹15.09, up 6.42 percent from the previous close of ₹14.18. It later pared some gains and was trading around ₹14.90.
The telecom operator has a market capitalisation of about ₹1.61 lakh crore.
Funds to be split between capex and debt repayment
The company plans to use the proceeds for both expansion and balance sheet improvement.
Utilisation of funds:
- ₹1,730 crore for capital expenditure and network expansion.
- ₹3,000 crore for debt reduction.
Vodafone Idea expects the investment to support its turnaround plans and strengthen confidence among lenders and investors.
Kumar Mangalam Birla backs turnaround efforts
Speaking at the company’s Extraordinary General Meeting (EGM), Chairman Kumar Mangalam Birla expressed confidence in Vodafone Idea’s recovery.
He said the company remains focused on:
- Network expansion.
- Improving customer service.
- Enhancing operational efficiency.
According to Birla, these efforts are aimed at strengthening the company’s position in the market.
Promoter stake to increase
Following the full conversion of warrants, the Aditya Birla Group’s stake in Vodafone Idea is expected to rise from 9.6 percent to around 13 percent.
Shareholding changes expected after conversion:
- Aditya Birla Group: 9.6% to around 13%
- Combined stake of Aditya Birla Group and Vodafone Plc: Around 28.5%
- Government holding: About 49% to around 47%
₹45,000 crore capex plan remains unchanged
Vodafone Idea has reiterated its three-year capital expenditure plan of ₹45,000 crore.
Management said spending is expected to pick up from Q1 FY27 as the company accelerates network expansion and service improvements.
Funding discussions under way
The company is also in talks for a larger financing package.
Proposed facilities include:
- ₹25,000 crore in funded facilities.
- ₹10,000 crore in non-funded facilities, including:
- Letters of credit.
- Bank guarantees.
The funding discussions are being led by an SBI-led consortium comprising public sector, private and foreign banks.
Q4 FY26 performance
Revenue rose to ₹11,332 crore in Q4 FY26 from ₹11,015 crore a year earlier, marking a growth of 2.88 percent.
The company reported a net profit of ₹51,970 crore in Q4 FY26, compared with a net loss of ₹7,167 crore in Q4 FY25.
Key financial metrics
- Three-year revenue CAGR: 2%
- ROCE: -1.58%
- ROE: 67.24%
- EPS: ₹3.19
About the company
Vodafone Idea Ltd (Vi) was created through the merger of Vodafone India and Idea Cellular in 2018.
The company provides:
- Mobile voice services.
- Data services.
- Digital offerings.
It remains one of India’s largest telecom operators by subscriber base.
TL;DR
Vodafone Idea shares gained after shareholders approved a ₹4,730 crore investment from the Aditya Birla Group. The company plans to use ₹1,730 crore for network expansion and ₹3,000 crore for debt reduction while continuing with its ₹45,000 crore capex plan.
AI summary
- Vodafone Idea secured approval for a ₹4,730 crore promoter investment.
- Shares rose more than 5 percent following the development.
- ₹1,730 crore will be used for network expansion.
- ₹3,000 crore has been allocated for debt reduction.
- The company continues to pursue its ₹45,000 crore capex programme.
