Highlights
- Vodafone Idea, the third-largest telecom operator in India, will be getting money from the Aditya Birla Group (ABG) owned entity Surjaya Investments.
- The money will be given to the telco against preferential equity.
- After conversion, Surjaya Investments will own 3.82% stake in Vodafone Idea, according to a regulatory filing.
Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks

Vodafone Idea Limited (VIL), the third-largest telecom operator in India, will be getting money from the Aditya Birla Group (ABG) owned entity Surjaya Investments. The money will be given to the telco against preferential equity. After conversion, Surjaya Investments will own 3.82% stake in Vodafone Idea, according to a regulatory filing. The amount, which have not mentioned so far is Rs 4,730 crore. This money will allow Vodafone Idea to get the much needed funds for boosting capex (capital expenditure).
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Kumar Mangalam Birla Backs Vodafone Idea
Vodafone Idea is in a unique position right now. The telco is getting support from the government, the law makers, and thus, the promoter is also now willing to put in additional capital. There are reports suggesting that some help could also come from Vodafone Group Plc, which is also a promoter in Vi, but has written off the investment in the telco.
Kumar Mangalam Birla, who recently came back as the chairman of Vodafone Idea, has showed support in the form of putting additional capital. Many in the market believe that this could be seen as confidence capital and encourage other investors to put in money as well.
The losses of the telecom operator are narrowing. More than that, this additional capital will help the company’s cash flow, which is where it needs most help.
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