Govt Looking to Sell Stake in Vodafone Idea: Report

Vodafone Idea Limited (VIL), the third-largest telecom operator in the country, is 23.15% owned by the central government. This happened as the telco opted for the option of reducing interest dues on deferred payments to the government and in exchange gave equity to the center. Since the telco has raised funds successfully and is looking to raise more via debt, the government is considering selling its 23.15% stake in the company. The reason why the Indian government took a stake in the company was to ensure that it kept going and that India didn’t turn into a duopoly between Reliance Jio and Bharti Airtel.

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However, now the company’s situation looks a lot more stable and thus, the government is considering whether the sovereign funds would be interested in acquiring its 23.15% stake, according to a financialexpress report.

A source told the publication, “Since the government and the company have displayed more than sufficient intent that Vodafone Idea is a long-term telecom player and the country will have three strong player in the sector, investment by such funds will be profitable.”

Abu Dhabi Investment Authority, Qatar Investment Authority, and Singapore’s Temasek are some of the funds which have been reached out to by the government. One of the most interesting things that these funds have been told by the government is that it is possible for the center to extend the moratorium period for deferred payments to support the company.