Vodafone Group Clears Significant Debt

In a significant financial move, the UK-based Vodafone Group has successfully cleared dues amounting to around Rs 11,650 crore, or approximately 109 million pounds, which were raised against shares of Vodafone Idea (VIL). This development was disclosed through a regulatory filing, highlighting a major step towards financial restructuring within the telecom giant.

Details of the Debt Clearance

Vodafone Group had previously pledged almost its entire stake in VIL to secure the debt. The pledge was in favor of HSBC Corporate Trustee Company (UK), representing the debt raised by Vodafone Group's entities based in Mauritius and India. The repayment led to the release of pledges on 15,720,826,860 equity shares of VIL, which constituted 22.56% of the company's equity share capital on a fully diluted basis.

Implications for Vodafone Idea

This financial maneuver not only underscores Vodafone Group's commitment to stabilizing its investments but also significantly impacts Vodafone Idea's market standing. The shares, valued at around Rs 11,649 crore based on Vodafone Idea's closing stock price of Rs 7.41 on Friday, represent a substantial portion of the company's equity.

As of September 30, 2024, Vodafone Group holds a 22.56% stake in VIL, with the Aditya Birla Group and the Government of India holding 14.76% and 23.15% stakes, respectively. This move is expected to have a positive effect on the company's financial health and investor confidence.