Vi shares surge as Indian government boosts stake to 48.99%

On Tuesday morning, shares of Vodafone Idea Limited (VIL) rose by over 18%.Vi shares were at Rs 8.09, an increase of 18.97%. Vodafone Idea is off to an excellent start in the stock market for FY26. The Indian government has promised to pay Rs 36,940 crore of AGR (adjusted gross revenue) dues to Vodafone Idea in equity. The government is doing this for the second time. After the conversion, the government will have 48.99% stake in Vodafone Idea.

After the outstanding spectrum auction dues were converted into equity shares, the Indian government is to increase its holding in Vodafone Idea Limited (Vi) to about 48.99 percent. In line with the sectoral relief package that was announced in September 2021. The stock jumped more than 18% on Tuesday morning after Vi made this revelation on Sunday evening. Vi's stock reached a high of Rs 8.15.

Indus Towers is another telecommunication stock that gained on Tuesday morning.The share price of Indus Towers had risen 6.70%, trading at Rs 356.70. This is also due to Vodafone Idea's better business prospects. As one of Indus Towers' largest clients, the company profits from VIL's good future.

Under Section 62(4) of the Companies Act, 2013, the Ministry of Communications directed Vodafone Idea to issue equity shares to the government for a total of Rs 36,950 crore in an order dated 29th March . Following the direction received on sunday, the company has 30 days to issue the same, subject to regulatory authorities' approval, including that of the Securities and Exchange Board of India (SEBI).

Under the deal, Vodafone Idea will offer 3,695 crore equity shares at issue price of Rs 10 per share, each carrying a face value of Rs 10. Since Section 53 of the Companies Act prohibits issuing shares at less than par value, the pricing is on the higher of the volume-weighted price for the last 90 trading days or the last 10 trading days up to 26th February, 2025.