Vodafone Idea Limited (VIL) ownership structure has changed signficantly over the last year. This is because the telco has raised funds from equity, and also converted debt into equity for the government. VIL's majority stake holder is now the Indian government. The government owns about 48.99% of the stake in the telco. This is because Vi asked the center if it could convert more dues amounting to Rs 36,950 crore into equity for itself. The government agreed, and now that transaction has already happened. Here's the ownership structure of Vi after the conversion.
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Vodafone Idea Ownership Structure
Vodafone Idea's promoters including Aditya Birla Group and the Vodafone Group own about 9.50% and 16.07% stake in Vi. The public shareholders have 25.44% stake in the company. At last, it is the Indian government with a majority stake of 48.99%.
The government has already clarified in the past that it won't interfere in the operations or the management of Vi. The government stake simply comes to help out Vi to ensure that Indian telecom market doesn't become a duopoly between Reliance Jio and Bharti Airtel.
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It will be interesting to see how this structure will pan out in the future. For now, due to the equity conversion, Vi's debt has reduced. This has, in turn, helped the company see a boost in its credit rating.
On Friday, the ratings agency ICRA improved the credit rating of Vi to BBB- from the earlier BB+. This could potentially help the telco in raising funds via debt in the near future. If Vi can scale revenues and reduce debt further, that would help the company in raising funds via debt from banks/lending insitutions and execute its capex plans in the near future. The company remains engaged with the banks for further funds.
