Vodafone Idea to Seek Shareholders' Nod for ₹20k Cr Fundraise as AGR Talks with Govt Drag

Debt-ridden Vodafone Idea is set to conduct an extraordinary general meeting to seek shareholders’ approval to raise ₹ 20,000 crore and make changes to its Articles of Association (AoA) on June 27. Vi’s shareholders will vote on two resolutions, including amendments in the AoA aimed at retaining promoters' control, especially with respect to governance and management rights, and permission to issue securities to raise capital.

The meeting by the financially troubled telecom major comes just days after its board approved to raise ₹ 20,000 crore for capex after facing multiple rejections of its plea on adjusted gross revenue (AGR) dues by the Supreme Court. The development also comes around the time when Vi’s negotiations with the Narendra Modi-led government to reduce AGR-driven liabilities have shown no sign of hope.

Also Read: Another Bailout, Same Headwinds: Can Vodafone Idea Break the Cycle?

Additionally, the recent dues-to-equity conversion substantially increased the government’s stake in Vi from 22.6% to 49%. The promoters’ stake, including the Aditya Birla Group and Vodafone Group, stands at 25.6% and presently, they have operational control of the telecom company. 

“The group’s ability to settle the above liabilities is dependent on further support from the DoT on the AGR matter, fund raise through equity and debt and generation of cash from operations,” the company said in its earnings statement. “Based on current efforts, the group believes that it would be able to get DoT support, successfully arrange funding and generate cash flow from operations,” the company added. 

The company recently posted its fourth-quarter results for the financial year 2025. The earnings statement showed that the company’s losses in the quarter narrowed to ₹ 7,166.1 crore. The revenue in Q4FY25 increased 3.8% year-on-year to ₹ 11,013.5 crore from a year ago. The average revenue per user (ARPU) stood at ₹ 175 for the quarter against ₹ 153 in Q4FY25, driven by a tariff hike in the beginning of the FY25.