Shares of Vodafone Idea climbed up to 2 percent in early trading on Monday before trimming some gains, following reports that several domestic and international investors are exploring the possibility of acquiring a stake in the telecom operator. The stock was trading at ₹9.46 in morning trade, marking a gain of about 2.05 percent after touching an intraday high of 5.1 percent. Over the past year, Vodafone Idea’s shares have surged nearly 36.2 percent.
According to a report by The Economic Times, Singapore-based ST Telemedia and India’s JSW Group are among the investors currently in discussions with the debt-burdened telecom company regarding a potential investment. Tillman Global Holdings, a US-based firm, is also said to be evaluating the opportunity.
Sources cited in the report said the talks are still at an exploratory stage and there is no guarantee that a deal will materialise. Meanwhile, Vodafone Idea’s management is expected to meet institutional investors in Singapore and Hong Kong on March 16 and 17 as part of ongoing discussions. The government has been actively seeking a strategic investor who can infuse fresh capital and help strengthen the company’s operations, as Vodafone Idea continues to struggle with heavy debt and stiff competition from Bharti Airtel and Reliance Jio. Currently, the Aditya Birla Group holds a 9.5 percent stake in the company, while Vodafone Group owns about 16.07 percent.
Brokerage estimates suggest that if a strategic investor injects around ₹50,000 crore in fresh equity, the government could convert nearly ₹48,000 crore of the company’s spectrum dues into equity without raising its stake beyond 49 percent. This move could potentially reduce Vodafone Idea’s spectrum liabilities by about 40 percent, significantly easing its financial stress. The telecom operator is in urgent need of fresh funding as it looks to accelerate its 5G rollout and prevent further loss of market share. While Vodafone Idea has launched 5G services in more than 30 cities, its expansion still lags behind rivals Airtel and Jio.