Vodafone Group Clears Rs 11,650 Crore Debt Secured Against Vodafone Idea Shares

New Delhi (The Uttam Hindu): Vodafone Group has resolved outstanding debts of approximately ₹11,650 crore (109 million pounds) that were secured against its shareholding in Vodafone Idea (VIL), according to a regulatory filing. The settlement led to the release of nearly 15.72 billion equity shares pledged as collateral representing 22.56% of the company’s fully diluted equity share capital.

The debt was structured through HSBC Corporate Trustee Company (UK) facilitating funds raised by Vodafone Group’s entities in Mauritius and India. On December 27, 2024 HSBC released the pledged shares following full repayment by Vodafone Promoter Shareholders.

Shares Valued at ₹11,649 Crore

Based on Vodafone Idea’s closing share price of ₹7.41 on Friday, the released shares are valued at approximately ₹11,649 crore. The filing highlighted the indirect encumbrance on these shares has been lifted, marking a significant milestone for Vodafone Group.

Current Shareholding Structure

Post-settlement Vodafone Group retains a 22.56% stake in Vodafone Idea. Aditya Birla Group holds a 14.76% stake while the Indian government remains the largest shareholder with a 23.15% stake as of September 30, 2024. This development underscores Vodafone Group’s commitment to deleveraging its financial position while maintaining its strategic investments in Vodafone Idea, a key player in India’s telecom sector.