Vodafone Idea gets a Duct-Tape-Fix by converting government debt to equity

Thu, 03 Apr 2025 13:16:02 GMT

The Indian government is converting ₹37,000 crores of Vodafone Idea’s (VI) debt into equity at ₹10 per share, despite the stock trading lower. This move, driven by regulatory constraints, offers only temporary relief as VI remains financially distressed with ₹165,000 crores in losses and a negative net worth.

With massive upcoming payments and a struggling business model, VI’s survival is uncertain. A structured bankruptcy may be the best solution, ensuring market competition while avoiding prolonged financial struggles. Meanwhile, Airtel and Jio stand to gain from VI’s woes.