Vodafone Idea has said that it cannot operate beyond FY26 without the government’s support. This is as per a report by CNBC-TV18. The company reportedly said that if it does not get support from the government, it will go to the National Company Law Tribunal (NCLT) for insolvency.
Vodafone – Ideas owes the government Rs 1.95 lakh crore for the spectrum dues. If Vodafone-Idea goes for insolvency, the government will have no recovery of its Rs 1.18 lakh crore dues for the spectrum sales.
After the equity conversion, the government has a 49 percent stake in Vodafone-Idea.
The company has said that it has received no support from the banks despite the government’s equity conversion and Rs 26000 crore equity infusion.
Vodafone-Idea seeks relief from Supreme Court
Earlier, on Thursday, Vodafone Idea filed a fresh plea at the Supreme Court seeking further relief on its adjusted gross revenue (AGR) and spectrum dues. The company is seeking a waiver of over Rs 30,000 crore on account of penalty and interest, as per a CNBC-TV 18 report.
Vodafone Idea maintained that the government is “handicapped” in granting relief due to constraints imposed by the AGR judgment. It further claimed that the government is now effectively a ‘partner’ in the company with 49 per cent stakes after it had converted AGR and spectrum dues into equity.
According to the latest shareholding data, Foreign Portfolio Investors hold a 6.56 per cent stake, though no individual investor holds more than 1 per cent. The company has over 59 lakh small shareholders, or those with an authorised share capital of up to Rs 2 lakh.