Shareholders questioned the management about the persistent erosion in subscriber base, poor stock performance, and the lack of a clear turnaround strategy. The absence of Aditya Birla Group chairman Kumar Mangalam Birla from the meeting also drew concern, with a few shareholders expressing disappointment over his non-attendance.
Vi’s share price has fallen over 38 percent from its follow-on public offer (FPO) price of Rs 12 in April 2024 to Rs 7.40, eroding investor value. The government, which holds a 49 percent stake in the company following a dues-to-equity conversion, has also seen its notional investment lose nearly 26 percent in value. Retail investors, holding close to 15 percent of the company, expressed frustration over repeated fund infusions with no improvement in the company’s fundamentals.
“Despite the previous fundraises, including the government conversion, there is no upside in the share price. In fact, the government’s equity investment (via dues conversion) in the company has also gone into losses (at the current share price). If the management cannot handle the company, it should consider selling or surrendering it to the government,” Santosh Kumar Saraf, a retail shareholder of the company, said during the meeting, as mentioned in the report.
Saraf wondered aloud what would happen if the company defaulted even after the fundraiser. As of March 31, Vodafone Idea’s total government dues stood at nearly Rs 2 trillion, including Rs 1.19 trillion in spectrum dues and Rs 83,400 crore in adjusted gross revenue (AGR) liabilities. From FY26, the company is expected to pay over Rs 18,000 crore annually towards these dues, with the moratorium expiring in September 2025.
The telecom operator has been steadily losing subscribers, though the pace has recently slowed. The March 2025 quarter saw a net loss of 1.6 million subscribers, compared to losses of 5 million in each of the preceding two quarters. As of March-end, the company had 198.2 million mobile users.
Lack of Strategic Clarity
Retail shareholders also sought clarity on Vi’s roadmap, including its plans for 5G rollout, satellite-based services through a recent partnership with US-based AST SpaceMobile, and whether any merger with state-run BSNL was being considered. The government, however, has ruled out such a merger. Union Communications Minister Jyotiraditya Scindia reiterated in April that both companies would operate independently.
Also Read: Communications Minister Rules Out AGR Relief, Says Vodafone Idea Must Stand on Its Own
“The company needs to focus on increasing its business. Many small investors are stuck in the company for the last so many years,” said Redeppa Gunduluru, another retail investor, who according to the report, has expressed concerns over the losses he incurred recently and the volatile share price.
Management responses during the EGM were limited. Chief Financial Officer Murthy G.V.A.S. reportedly said the Rs 20,000 crore to be raised would go towards capital expenditure, but did not address the shareholders’ queries about the company’s survival and revival concerns and the way forward.
Drop in Vi Share Price
Vi has previously announced a Rs 50,000–55,000 crore capex plan over three years to expand its 4G network and launch 5G services. However, analysts warn that without the proposed Rs 25,000 crore bank funding, this target may not be feasible. According to brokerage Motilal Oswal, the company is likely to face an annual cash shortfall of Rs 20,000 crore over FY25–27.
Since the Vodafone-Idea merger in 2018, the company’s share price has dropped from Rs 30 to Rs 7.40. To date, Vi has raised around Rs 56,000 crore in equity, including Rs 27,000 crore from promoters. However, its plea to the Supreme Court for AGR relief was rejected, and banks remain cautious due to its outstanding liabilities.
In the petition, the telecom company had said it would not be able to operate beyond the current fiscal year without bank funding.
Also Read: Vodafone Idea Says It Can’t Operate Beyond FY 2025–26 as Banks Refuse Loans
Capex Plan Dependent on Bank Funding
On the shareholder questions, Ravinder Takkar, the company’s non-executive chairman, reportedly said, “Most of the questions were related to items outside the agenda items (of the EGM).” Takkar, however, asked the company to take note of some of the suggestions made by the shareholders.
According to the report, Vodafone Idea is the most widely held stock, with over 6 million retail shareholders (more than the State Bank of India), according to the company’s letter to the Department of Telecommunications on 17 April seeking further support.
CEO Akshaya Moondra said in a recent earnings call on June 2 that the immediate capex of Rs 5,000–6,000 crore would be undertaken in early FY26, while further spending would depend on bank funding.
Also Read: Government Weighs Relief Options for Vodafone Idea Amid Survival Concerns
Vi’s Falling Subscriber Base
The retail investors also questioned the company’s management about the fall in the subscriber base. According to TRAI’s telecom subscription data as of May 31, Vodafone Idea lost 274,103 wireless subscribers in the month of May, taking its subscriber base to 204.44 million wireless subscribers.
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