Vodafone-Idea CEO Akshaya Moondra makes emergency call to Telecom department

TOI Tech Desk / TIMESOFINDIA.COM / Mar 24, 2025, 09:17 IST

Text Size

Small
Medium
Large

Vodafone Idea CEO Akshaya Moondra has urgently requested the Department of Telecommunications to approve the conversion of Rs 36,950 crore of dues into equity to alleviate the company's financial struggles. The proposal might increase the government's stake in Vi to 49% if accepted.

Vodafone-Idea CEO Akshaya Moondra makes emergency call to Telecom department

Vodafone Idea (Vi) CEO Akshaya Moondra has reportedly urgently requested the Department of Telecommunications (DoT) Secretary Neeraj Mittal to approve equity conversion for the company's pending Adjusted Gross Revenue (AGR) and spectrum auction dues from 2012, 2014, 2015, and 2016. According to an exclusive report in Economic Times, this plea comes as Vi faces a significant increase in regulatory payments and struggles with its current financial situation.
According to the report, Moondra's letter to the DoT, dated March 11, outlines Vodafone-Idea's inability to provide a Rs 6,091 crore bank guarantee or make a Rs 5,493 crore cash payment related to a shortfall from the 2015 spectrum auction. He has asked the DoT to refrain from taking any punitive measures against the company.

Government stake in Vodafone-Idea to go up to 49%

Vodafone-Idea's request for equity conversion, as per the 2021 Telecom Reform Package, aims to address the company's cash flow challenges. Moondra's proposal seeks to convert Rs 36,950 crore of dues into equity, calculated on a net present value (NPV) protected basis. This conversion would potentially increase the government's stake in Vodafone-Idea from the current 22.6% to 49%, including a proposed conversion of Rs 13,809 crore related to the 2015 spectrum payment.

Moondra reportedly specifically requested “support for equity conversions up to the threshold of government of India shareholdings at 49%, that is, an amount of Rs 36,950 crore on NPV protected basis, subject to customary approvals at our end.�?br/>However, at Vodafone-Idea's current market capitalization of approximately Rs 54,401 crore, a 49% stake would be valued at around Rs 26,656.5 crore. The telco has not yet responded to requests for comment. The DoT's decision on Vodafone-Idea's request is crucial, especially given the recent stalling of a proposal to waive AGR dues, which has significantly impacted the financially strained telecom operator.

About the Author

TOI Tech Desk

The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk’s news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

End of Article