Vodafone Idea to amend shareholders’ pact to retain promoter control despite government’s 49% stake

Debt-laden Vodafone Idea Ltd (Vi) stated on Friday that its board has authorised adjustments to the shareholders’ settlement to enable promoters — Aditya Birla Group and Vodafone Group — to retain governance and administration rights, even because the Indian government’s stake within the firm has risen to 48.99%.
The proposed modification, authorised throughout a board assembly on May 2, seeks to revise the “Qualifying Threshold” from 13% to 10% and, crucially, to exclude the federal government’s fairness from this calculation for governance functions, information company PTI reported.
“The Board of Directors at its meeting held today i.e. on 2 May 2025 have inter-alia resolved to… amend certain clauses of the Shareholders’ Agreement… so as to modify, amongst others, the ‘Qualifying Threshold’ from 13 per cent to 10 per cent and, solely for this purpose, to disregard the equity shares originally issued to the Government of India,” Vodafone Idea stated in a regulatory submitting.
The firm will search shareholder approval for these amendments at an Extraordinary General Meeting (EGM) scheduled for June 3.
Following the federal government’s approval to convert dues value Rs 36,950 crore into fairness, its shareholding rose from 22.6% to 48.99%. Meanwhile, Aditya Birla Group and Vodafone Group now maintain 9.5% and 16.07% respectively.
Under the present shareholder settlement, promoters retained governance rights so long as they collectively held a minimum of 13% of fairness. The revised pact goals to be sure that promoters can proceed appointing administrators and key executives, even after dilution of their stake.
Vi’s whole debt rose to Rs 2.17 lakh crore within the December 2024 quarter, in contrast to Rs 2.03 lakh crore a yr earlier. Of this, Rs 2.14 lakh crore is owed to the federal government, and Rs 2,300 crore to banks and monetary establishments.
This restructuring transfer is seen as a essential step in sustaining operational continuity and strategic path below promoter management despite the federal government rising as the one largest shareholder.